Comcast 2010 Annual Report Download - page 5

Table of Contents
Part 1
1
Comcast 2010 Annual Report on Form 10-
K
Item 1: Business
We are a leading provider of video, high-speed Internet and
phone services (“cable services”) to residential and business
customers in the United States. On January 28, 2011, we
closed our transaction with General Electric Company (“GE”)
in which we acquired control of the businesses of NBC
Universal, Inc. (now named NBCUniversal Media, LLC
(“NBCUniversal”)), a leading media and entertainment
company that develops, produces and distributes
entertainment, news, sports and other content to global
audiences.
As of December 31, 2010, our cable systems served
approximately 22.8 million video customers, 17.0 million high-
speed Internet customers and 8.6 million phone customers
and passed over 51 million homes and businesses in 39
states and the District of Columbia. We report the results of
these operations as our Cable segment. In 2010, our Cable
segment generated approximately 94% of our consolidated
revenue. As of December 31, 2010, our Cable segment also
included the operations of our regional sports and news
networks. As of December 31, 2010, our Programming
segment consisted primarily of our consolidated national
cable programming networks, E!, Golf Channel, VERSUS,
G4 and Style. We were incorporated under the laws of
Pennsylvania in December 2001. Through our predecessors,
we have developed, managed and operated cable systems
since 1963.
As of December 31, 2010, our other business interests
included Comcast Interactive Media and Comcast Spectacor.
Comcast Interactive Media develops and operates our
Internet businesses, including Comcast.net, Xfinity TV, Plaxo,
Fandango and DailyCandy. Comcast Spectacor owns two
professional sports teams, the Philadelphia 76ers and the
Philadelphia Flyers, and a large, multipurpose arena in
Philadelphia, the Wells Fargo Center, and provides facilities
management and food services for sporting events, concerts
and other events. Comcast Interactive Media, Comcast
Spectacor and all other consolidated businesses not included
in our Cable or Programming segments were included in
“Corporate and Other” activities as of December 31, 2010.
For financial and other information about our reportable
segments, refer to Note 19 to our consolidated financial
statements included in this Annual Report on Form 10-K.
Available Information and Websites
Our phone number is [phone], and our principal
executive offices are located at One Comcast Center,
Philadelphia, PA 19103-2838. The public may read and copy
any materials we file with the SEC at the SEC’s Public
Reference Room at 100 F Street, NE, Washington, DC
20549. The public may obtain information on
the operation of the Public Reference Room by calling the
SEC at 1-800-SEC-0330. Our Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-
K and any amendments to such reports filed with or furnished
to the SEC under Sections 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”),
are available free of charge on the SEC’s website at
www.sec.gov and on our website at www.comcast.com as
soon as reasonably practicable after such reports are
electronically filed with the SEC. The information posted on
our website is not incorporated into our SEC filings.
General Developments of Our Businesses
In addition to the NBCUniversal transaction discussed below,
the following are the more significant developments in our
businesses during 2010:
•
an increase in consolidated revenue of 6.1% to
$37.9 billion and an increase in consolidated operating
income of 10.6% to $8.0 billion
•
an increase in Cable segment revenue of 5.6% to
$35.8 billion and an increase in Cable segment operating
income before depreciation and amortization of 6.4% to
$14.6 billion
•
an increase in Programming segment revenue of 11.8% to
$1.7 billion and an increase in Programming segment
operating income before depreciation and amortization of
20.6% to $469 million
• the addition of 1.1 million high-
speed Internet customers
and 988,000 phone customers; and a decrease of 757,000
video customers
•
a reduction in Cable segment capital expenditures of 3.8%
to $4.8 billion
•
the continued investment in our cable distribution system,
including the ongoing transition from analog to digital
transmission of the channels we distribute (“
our all digital
conversion”);
the continued deployment of DOCSIS 3.0
wideband technology; expanding the offering of certain
programming to our customers online; and the continued
deployment of 4G wireless high-
speed Internet service in
certain markets
•
an increase in our total debt outstanding of $2.3 billion to
$31.4 billion, which is primarily due to the issuance of
$3.4 billion aggregate principal amount of notes, the
proceeds of which were primarily used to repay debt at its
maturity in 2010 and finance the NBCUniversal transaction
in 2011