Comcast 2009 Annual Report Download - page 58

Table of Contents
2009
2008 2007
Year ended December 31 (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
Net Income
Attributable
to Comcast
Corporation
Shares
Per
Share
Amount
Basic EPS attributable to Comcast
Corporation shareholders
$
3,638
2,875
$
1.27
$
2,547
2,939
$
0.87
$
2,587
3,098
$
0.84
Effect of dilutive securities:
Assumed exercise or issuance of shares
relating to stock plans
10
13
31
Diluted EPS attributable to Comcast
Corporation shareholders
$
3,638
2,885
$
1.26
$
2,547
2,952
$
0.86
$
2,587
3,129
$
0.83
49
Comcast 2009 Annual Report on Form 10-
K
Noncontrolling Interests in Consolidated Financial
Statements
In November 2007, the FASB issued new accounting
guidance that establishes accounting and reporting
requirements for noncontrolling interests in consolidated
financial statements. The guidance requires noncontrolling
interests (previously referred to as minority interests) that are
not redeemable to be separately reported in the equity
section of an entity’s consolidated balance sheet.
Redeemable noncontrolling interests continue to be
presented outside of equity. The guidance establishes
accounting and reporting standards for (i) ownership interests
in subsidiaries held by parties other than the parent, (ii) the
amount of consolidated net income attributable to the parent
and to the noncontrolling interests, (iii) changes in a parent’s
ownership interest and (iv) the valuation of retained
noncontrolling equity investments when a subsidiary is
deconsolidated. In addition, it establishes disclosure
requirements, including new financial statement captions that
clearly distinguish between controlling and noncontrolling
interests. These include a separate presentation of net
income attributable to controlling and noncontrolling interests
with the combined amounts labeled as
“Net income from
consolidated operations” in our statement of operations.
Under the new guidance, “Net income from consolidated
operations” is comparable to what was previously presented
as “Income from continuing operations before minority
interest,” and “Net income attributable to Comcast
Corporation” is comparable to what was previously presented
as “Net income.” The new accounting guidance requires the
retrospective application of the new financial statement
captions. We have applied the new guidance since
January 1, 2009. See Note 11 for further details on our
noncontrolling interests.
Consolidation of Variable Interest Entities
In June 2009, the FASB updated the accounting guidance
related to the consolidation of VIEs. The updated guidance
(i) requires ongoing reassessments of whether an enterprise
is the primary beneficiary of a VIE, (ii) changes the
quantitative approach previously required for determining the
primary beneficiary of a VIE and replaces it with a qualitative
approach, and (iii) requires additional disclosure about an
enterprise’s involvement in VIEs. The guidance will be
effective for us on January 1, 2010 and we do not expect it to
have a material impact on our consolidated financial
statements.
Note 4: Earnings Per Share
Basic earnings per common share attributable to Comcast
Corporation shareholders (“Basic EPS”) is computed by
dividing net income attributable to Comcast Corporation by
the weighted-average number of common shares outstanding
during the period.
Our potentially dilutive securities include potential common
shares related to our stock options and our RSUs. Diluted
earnings per common share attributable to Comcast
Corporation shareholders (“Diluted EPS”) considers the
impact of potentially dilutive securities using the treasury
stock method, except in periods in which there is a loss,
because the inclusion of the potential common shares would
have an antidilutive effect. Diluted EPS excludes the impact
of potential common shares related to our stock options in
periods in which the option exercise price is greater than the
average market price of our Class A common stock or our
Class A Special common stock, as applicable (see Note 14).
Diluted EPS for 2009, 2008 and 2007 excludes
approximately 195 million, 159 million and 61 million,
respectively, of potential common shares related to our
share-based compensation plans, because the inclusion of
the potential common shares would have an antidilutive
effect.