Comcast 2010 Annual Report Download - page 6

Table of Contents
Comcast 2010 Annual Report on Form 10-K
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We operate our businesses in an intensely competitive
environment. Competition for the cable services we offer
primarily includes direct broadcast satellite (“DBS”) operators
and phone companies. In 2010, our competitors for cable
services continued to add features and adopt aggressive
pricing and packaging for services that are comparable to the
services we offer. A substantial portion of our Cable segment
revenue comes from customers whose spending patterns
may be affected by prevailing economic conditions.
NBCUniversal Transaction
On January 28, 2011, we closed our transaction with GE to
form a new company named NBCUniversal, LLC
(“NBCUniversal Holdings”). We now control and own 51% of
NBCUniversal Holdings, and GE owns the remaining 49%.
As part of the NBCUniversal transaction, GE contributed the
businesses of NBCUniversal, which is now a wholly owned
subsidiary of NBCUniversal Holdings. The NBCUniversal
contributed businesses include its national cable
programming networks, the NBC network and its owned NBC
affiliated local television stations, the Telemundo network and
its owned Telemundo affiliated local television stations,
Universal Pictures filmed entertainment, the
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the repurchase of approximately 70 million shares of our
Class A Special common stock under our share
repurchase authorization for approximately $1.2 billion
• the declaration and payment of dividends of $1.1 billion
Universal Studios Hollywood theme park and other related
assets. We contributed our national cable programming
networks, our regional sports and news networks, certain of
our Internet businesses, including DailyCandy and
Fandango, and other related assets (“Comcast Content
Business”). In addition to contributing the Comcast Content
Business to NBCUniversal, we made a cash payment of
$6.2 billion at the closing.
As a result of the NBCUniversal transaction, beginning in
2011 we expect to present five reportable segments, Cable
Distribution (currently presented in our Cable segment),
Cable Networks, Broadcast Networks, Filmed Entertainment
and Theme Parks. Our Programming segment, our regional
sports and news networks (currently presented in our Cable
segment) and our contributed Comcast Interactive Media
businesses (currently presented in Corporate and Other) will
be presented with NBCUniversal’s businesses in the new
segments. The businesses of Comcast Interactive Media that
were not contributed to NBCUniversal will be included in our
Cable Distribution segment.
For more information about this transaction, refer to Note 21
to our consolidated financial statements included in this
Annual Report on Form 10
-K. For more information on the
Federal Communications Commission (“FCC”) order and the
Department of Justice consent decree related to the
transaction, see “Legislation and Regulation” below. For
more information on NBCUniversal, refer to “Management’s
Discussion and Analysis of Financial Condition and Results
of Operations.”