Comcast 2007 Annual Report Download - page 61

We sponsor various retirement investment plans that allow eligible
employees to contribute a portion of their compensation through
payroll deductions in accordance with specified guidelines. We
match a percentage of the employees’ contributions up to certain
limits. For the years ended December 31, 2007, 2006 and 2005,
expenses related to these plans amounted to $150 million, $125
million and $115 million, respectively.
We also maintain unfunded, nonqualified deferred compensation
plans, which were created for key executives, other members of
management and nonemployee directors (each a “Participant”).
The amount of compensation deferred by each Participant is
based on Participant elections. Account balances of Participants
are credited with income generally based on a fixed annual rate of
interest. Participants will be eligible to receive distributions of the
amounts credited to their account balance based on elected
deferral periods that are consistent with the plans and applicable
tax law. Interest expense recognized under the plans totaled
$65 million, $50 million and $40 million for the years ended
December 31, 2007, 2006 and 2005, respectively. The unfunded
obligation of the plans total $672 million and $554 million as of
December 31, 2007 and 2006, respectively. We have purchased
life insurance policies to fund a portion of this unfunded obligation.
As of December 31, 2007 and 2006, the cash surrender value of
these policies, which are included in other noncurrent assets, was
approximately $112 million and $40 million, respectively.
Other
For select key employees, we also maintain collateral assignment
split-dollar life insurance agreements for which we have a con-
tractual obligation to bear certain insurance-related costs. Under
some of these agreements, our obligation to provide benefits to
the employee extends beyond retirement. We expect to record a
liability of approximately $130 million related to the adoption of
EITF 06-10 as of January 1, 2008, by an adjustment to retained
earnings.
Note 10: Stockholders’ Equity
Common Stock
Our Class A Special common stock is generally nonvoting. Holders
of our Class A common stock in the aggregate hold 66
2
⁄ 3 %ofthe
aggregate voting power of our common stock. The number of
votes that each share of our Class A common stock has at any
time depends on the number of shares of Class A common stock
and Class B common stock then outstanding. Each share of our
Class B common stock is entitled to 15 votes, and all shares of
our Class B common stock in the aggregate have 33
1
⁄ 3 %ofthe
voting power of all of our common stock. The 33
1
⁄ 3 % aggregate
voting power of our Class B common stock will not be diluted by
additional issuances of any other class of our common stock. Our
Class B common stock is convertible, share for share, into Class A
or Class A Special common stock, subject to certain restrictions.
Stock Split
On January 31, 2007, our Board of Directors approved a three-
for-two stock split in the form of a 50% stock dividend (the “Stock
Split”) which was paid on February 21, 2007 to shareholders of
record on February 14, 2007. The stock dividend was in the form of
an additional 0.5 share for every share held and was payable in
shares of Class A common stock on the existing Class A common
stock and payable in shares of Class A Special common stock on
the existing Class A Special common stock and Class B common
stock with cash being paid in lieu of fractional shares. The number of
shares outstanding and related prices, per share amounts, share
conversions and share-based data have been adjusted to reflect the
Stock Split for all periods presented.
Board-Authorized Share Repurchase Program
During 2007, 2006 and 2005, we repurchased under our Board-
authorized share repurchase program approximately 133 million,
113 million and 119 million shares, respectively, of our Class A
and Class A Special common stock for aggregate consideration of
$3.102 billion, $2.347 billion and $2.290 billion, respectively.
In October 2007, the Board of Directors authorized a $7 billion
addition to the existing share repurchase program. As of
December 31, 2007, we had approximately $6.9 billion of avail-
ability remaining under the share repurchase authorization, which
we intend to fully utilize by the end of 2009, subject to market
conditions.
Accumulated Other Comprehensive Income (Loss)
The table below presents our accumulated other comprehensive
income (loss), net of taxes for the years ended December 31,
2007 and 2006:
(in millions) 2007 2006
Unrealized gains (losses) on marketable
securities $27 $ 165
Unrealized gains (losses) on cash flow
hedges (110) (121)
Unrealized gains (losses) on employee
benefit obligations 24 (5)
Cumulative translation adjustments 3(5)
Accumulated other comprehensive
income (loss) $ (56) $34
59 Comcast 2007 Annual Report on Form 10-K