Comcast 2010 Annual Report Download - page 75

Table of Contents
Computation of Diluted EPS
2010
2009 2008
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
$
3,635
2,808
$
1.29
$
3,638
2,875
$
1.27
$
2,547
2,939
$
0.87
Effect of dilutive securities:
Assumed exercise or issuance of shares
relating to stock plans
12
10
13
Diluted EPS attributable to Comcast
Corporation shareholders
$
3,635
2,820
$
1.29
$
3,638
2,885
$
1.26
$
2,547
2,952
$
0.86
Comcast 2010 Annual Report on Form 10-K
66
Note 5: Acquisitions and Other Significant Events
2010
During 2010, we acquired CIMCO Communications, Inc.
(“CIMCO”), a phone and high-speed Internet service provider
for businesses, Paciolan, Inc. (“Paciolan”), a developer of
automated ticketing software, and New Global Telecom, Inc.
(“NGT”), a phone service provider for small and medium-
sized businesses, and made other smaller acquisitions. The
aggregate purchase price of all of these acquisitions was
approximately $195 million. The results of operations for
CIMCO and NGT are reported in our Cable segment. The
results of operations for Paciolan are reported in Corporate
and Other. The results of operations for these acquisitions
have been included in our consolidated results of operations
since their respective acquisition dates and were not material
to our consolidated financial statements.
2008
Insight Transaction
In April 2007, we and Insight Communications (“Insight”)
agreed to divide the assets and liabilities of Insight Midwest,
a 50-50 cable system partnership with Insight (the “Insight
transaction”). On January 1, 2008, the distribution of the
assets of Insight Midwest was completed and we received
cable systems serving approximately 696,000 video
customers in Illinois and Indiana (the “Comcast asset pool”).
Insight received cable systems serving approximately
652,000 video customers, together with approximately $1.24
billion of debt allocated to those cable systems (the “Insight
asset pool”). We accounted for our interest in Insight
Midwest as an equity method investment until the Comcast
asset pool was distributed to us on January 1, 2008. We
accounted for the distribution of assets by Insight Midwest as
a sale of our 50% interest in the Insight asset pool in
exchange for acquiring an additional 50% interest in the
Comcast asset pool. The estimated fair value of the 50%
interest of the Comcast asset pool we received was
approximately $1.2 billion and resulted in a pretax gain of
approximately $235 million, which is included in other income
(expense). We recorded our 50% interest in the Comcast
asset pool as a step acquisition, which was in accordance
with the applicable accounting guidance at that time.
The results of operations for the cable systems acquired in
the Insight transaction have been reported in our
consolidated financial statements since January 1, 2008 and
are reported in our Cable segment.
Other
During 2008, we acquired an additional interest in Comcast
SportsNet Bay Area, Plaxo, an address book management
and social networking website service, the remaining interest
in G4 that we did not already own, and DailyCandy, an e-mail
newsletter and website. The aggregate purchase price of all
these acquisitions was approximately $610 million. The
results of operations for Plaxo and DailyCandy are reported
in Corporate and Other. The results of operations for these
acquisitions have been included in our consolidated results of
operations since their respective acquisition dates and were
not material to our consolidated financial statements.