Comcast 2009 Annual Report Download - page 69

Table of Contents
Comcast 2009 Annual Report on Form 10-K
60
Postretirement Benefit Plans
Our postretirement medical benefits cover substantially all of
our employees who meet certain age and service
requirements. The majority of eligible employees participate
in the Comcast Postretirement Healthcare Stipend Program
(the “stipend plan”), and a small number of eligible
employees participate in legacy plans of acquired companies.
The stipend plan provides an annual stipend for
reimbursement of healthcare costs to each eligible employee
based on years of service. Under the stipend plan, we are not
exposed to the increasing costs of healthcare because the
benefits are fixed at a predetermined amount. Substantially
all of our postretirement benefit obligations are recorded to
noncurrent liabilities.
Pension Benefit Plans
We sponsor two pension plans that together provide benefits
to substantially all former employees of a previously acquired
company. Future benefits for both plans have been frozen.
Other Employee Benefits
Deferred Compensation Plans
We maintain unfunded, nonqualified deferred compensation
plans for certain members of management and nonemployee
directors (each a “participant”). The amount of compensation
deferred by each participant is based on participant elections.
Participant accounts are credited with income primarily based
on a fixed annual rate. Participants are eligible to receive
distributions of the amounts credited to their account based
on elected deferral periods that are consistent with the plans
and applicable tax law. We have purchased life insurance
policies to fund a portion of the unfunded obligation related to
our deferred compensation plans. As of December 31, 2009
and 2008, the cash surrender value of these policies, which
are recorded to other noncurrent assets, was approximately
$264 million and $147 million, respectively.
Split-Dollar Life Insurance
We have collateral assignment split-dollar life insurance
agreements with select key employees that require us to
carry certain insurance-related costs. Under some of these
agreements, our obligation to provide benefits to the
employees extends beyond retirement.
On January 1, 2008, we adjusted beginning retained
earnings and recorded a liability of $132 million for the
present value of the postretirement benefit obligation related
to our split-dollar life insurance agreements in connection
with the adoption of new accounting guidance. As of
December 31, 2009 and 2008, this benefit obligation, which
is primarily recorded to noncurrent liabilities, was $166 million
Year ended December 31 (in millions)
2009
2008
2007
Benefit obligation
$
849
$
797
$
672
Interest expense
$
79
$
76
$
65
and $145 million, respectively. The related expenses were
$37 million and $24 million for the years ended December 31,
2009 and 2008, respectively.
Retirement Investment Plans
We sponsor several 401(k) retirement 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. In 2009, 2008
and 2007, expenses related to these plans amounted to $182
million, $178 million and $150 million, respectively.
Severance Benefits
We provide certain former employees severance benefits that
are payable after employment. A liability is recorded for
benefits provided when payment is probable, the amount is
reasonably estimable, and the obligation relates to rights that
have vested or accumulated. We recorded $81 million and
$126 million of severance costs during 2009 and 2008,
respectively.
Note 13: Equity
Common Stock
In the aggregate, holders of our Class A common stock have
66 / % of the voting power of our common stock and
holders of our Class B common stock have 33 /
3 % of the
voting power of our common stock. Our Class A Special
common stock is generally nonvoting. Each share of our
Class B common stock is entitled to 15 votes. The number of
votes held by each share of our Class A common stock
depends on the number of shares of Class A and Class B
common stock outstanding at any given time. The 33 / %
aggregate voting power of our Class B common stock cannot
be diluted by additional issuances of any other class of
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.
Share Repurchases
In 2007, our Board of Directors authorized a $7 billion
addition to our existing share repurchase authorization.
Under this authorization, we may repurchase shares in the
open market or in private transactions, subject to market
conditions. The share repurchase program does not have an
expiration date. As of December 31, 2009, we had
approximately $3.3 billion of availability remaining under our
share repurchase authorization. We intend to complete
repurchases under the current share repurchase
authorization by the end of 2012, subject to market
conditions.
Aggregate Share Repurchases
(in millions)
2009
2008
2007
Aggregate consideration
$
765
$
2,800
$
3,102
Shares repurchased
50
141
133
2 3 1
1 3