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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
ÈANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
FOR THE TRANSITION PERIOD FROM TO
Commission file number 001-32871
COMCAST CORPORATION
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 27-0000798
(State or other jurisdiction of
incorporation or organization) (I.R.S. Employer Identification No.)
One Comcast Center, Philadelphia, PA 19103-2838
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (215) 286-1700
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of Each Class Name of Each Exchange on which Registered
Class A Common Stock, $0.01 par value
Class A Special Common Stock, $0.01 par value
2.0% Exchangeable Subordinated Debentures due 2029
5.50% Notes due 2029
6.625% Notes due 2056
7.00% Notes due 2055
8.375% Guaranteed Notes due 2013
9.455% Guaranteed Notes due 2022
NASDAQ Global Select Market
NASDAQ Global Select Market
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
NONE
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ÈNo
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes No È
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
Yes ÈNo
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any,
every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preced-
ing 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes ÈNo
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and
will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendments to this Form 10-K. È
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in
Rule 12b-2 of the Exchange Act:
Large accelerated filer ÈAccelerated filer Non-accelerated filer Smaller reporting company
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes No È
As of June 30, 2011, the aggregate market value of the Class A common stock and Class A Special common stock held by
non-affiliates of the Registrant was $52.897 billion and $15.494 billion, respectively.
As of December 31, 2011, there were 2,095,476,503 shares of Class A common stock, 601,012,813 shares of Class A
Special common stock and 9,444,375 shares of Class B common stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Part III — The Registrant’s definitive Proxy Statement for its annual meeting of shareholders presently scheduled to be held
in May 2012.

Table of contents

  • Page 1
    ... Center, Philadelphia, PA 19103-2838 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (215) 286-1700 SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: Title of Each Class Name of Each Exchange on which Registered Class A Common Stock...

  • Page 2
    ... Accountant Fees and Services PART IV Item 15 Exhibits and Financial Statement Schedules Signatures This Annual Report on Form 10-K is for the year ended December 31, 2011. This Annual Report on Form 10-K modifies and supersedes documents filed before it. The Securities and Exchange Commission...

  • Page 3
    ... to Note 20 to our consolidated financial statements included in this Annual Report on Form 10-K. Available Information and Websites Our phone number is (215) 286-1700, and our principal executive offices are located at One Comcast Center, Philadelphia, PA 19103-2838. The public may read and copy...

  • Page 4
    ... cable operations. December 31 (in millions) 2011 2010 2009 2008 2007 Homes and businesses passed(a) Video Video customers(b) Video penetration(c) Digital video customers(d) Digital video penetration(d) High-speed Internet High-speed Internet customers High-speed Internet penetration(c) Voice Voice...

  • Page 5
    ... sports networks. In addition, our On Demand service provides HDTV video customers with a selection of up to 6,000 high-definition programming choices in select markets over the course of a month. Our digital video recorder ("DVR") service allows digital 3 Comcast 2011 Annual Report on Form...

  • Page 6
    ... sets. Our video customers generally have the ability to view some of our On Demand content, browse program listings, and schedule and manage DVR recordings online and through our mobile applications for smartphones and tablets. In 2012, we began streaming certain live television programming online...

  • Page 7
    ... may be viewed in multiple locations, such as online and through our mobile applications using smartphones and tablets. Our video programming expenses generally depend on the number of our video customers, the number of channels and amount of On Demand programs we provide and the number of delivery...

  • Page 8
    ... software Sales and Marketing We offer our services directly to residential and business customers through our call centers, door-to-door selling, direct mail advertising, television advertising, Internet advertising, local media advertising, telemarketing and retail outlets. We market our cable...

  • Page 9
    ... 31, 2011 (in millions)(a) Cable Network Description of Programming USA Network Syfy E! CNBC MSNBC Bravo Golf Channel Oxygen NBC Sports Network (formerly VERSUS) Style G4 Chiller CNBC World Cloo (formerly Sleuth) Universal HD 99 98 98 97 95 95 85 78 76 76 61 42 40 39 25 General entertainment...

  • Page 10
    ... of rights of varying nature to more than 100,000 episodes of popular television content, including current and classic titles, unscripted programming, sports, news, long-form and short-form programming and locally produced programming from around the world. In addition, the NBC network operates...

  • Page 11
    ... a summary of the NBC affiliated local television stations that we own and operate. DMA Served(a) Station General Market Rank(b) Percentage of U.S. Television Households(d) New York, NY Los Angeles, CA Chicago, IL Philadelphia, PA Dallas-Fort Worth, TX San Francisco-Oakland-San Jose, CA Washington...

  • Page 12
    ... electronic sell-through over the Internet. We also license our films, including selections from our film library, to all forms of television, including broadcast, cable and premium networks, and pay-per-view and video on demand services. These arrangements for Comcast 2011 Annual Report on Form 10...

  • Page 13
    ...cable services that are comparable to the pricing and services we offer. Recently, new video services and devices have emerged that offer Internet video streaming and downloading of movies, television shows and other video programming, some of which charge a nominal or no fee for access. The success...

  • Page 14
    ... franchised cable operators • satellite master antenna television ("SMATV") systems that generally serve MDUs, office complexes and residential developments • online services and devices that offer Internet video streaming and distribution of movies, television shows and other video programming...

  • Page 15
    ...phone services to their residential and business subscribers. Other Video Competitors Our cable services also may compete for customers with other companies, such as: • online services and devices that offer Internet video streaming and downloading of movies, television shows and other programming...

  • Page 16
    ...audience share with all forms of programming provided to viewers, including broadcast and cable networks, local television broadcast stations, premium networks, home entertainment, pay-per-view and video on demand services, online activities, including Internet streaming and downloading and websites...

  • Page 17
    ... video customers are not subject to rate regulation. From time to time, Congress and the FCC consider imposing new pricing or packaging regulations, including proposals that would require cable operators to offer programming networks on an a la carte or themed-tier basis instead of, or in addition...

  • Page 18
    ... to our video services customers and expect to continue to be subject to increasing demands for direct monetary compensation and other concessions from local television stations. Now that broadcasters have completed their transition from analog to digital transmission, cable operators generally are...

  • Page 19
    ... sale of set-top boxes and other equipment that can be used to receive digital video services. With the exception of certain one-way devices, like digital transport adapters, these regulations prohibit cable operators from deploying new set-top boxes that perform both channel navigation and security...

  • Page 20
    ...our programming costs. High-Speed Internet Services We provide high-speed Internet services over our cable distribution system. In 2002, the FCC ruled that highspeed Internet services such as ours are interstate information services that are not subject to regulation as a Comcast 2011 Annual Report...

  • Page 21
    ..., the FCC and certain state and local governments are considering proposals to impose customer service, quality of service, expanded copyright protection requirements, taxation, child safety, privacy and standard pricing regulations on high-speed Inter- 19 Comcast 2011 Annual Report on Form 10-K

  • Page 22
    ... reporting or other changes to general business taxes, central assessments for property tax, and taxes and fees on video, high-speed Internet and voice services. We and other cable industry members are challenging certain of these taxes through administrative and court proceedings. In addition...

  • Page 23
    ... station licenses for specific periods of time and, upon application, may renew the licenses for additional terms. Under the Communications Act, television broadcast licenses may be granted for a maximum term of eight years. Generally, the FCC renews broadcast 21 Comcast 2011 Annual Report on Form...

  • Page 24
    ... local television stations and on the primary signal of our owned Telemundo affiliated local television stations. FCC regulations also limit the display during children's programming of Internet addresses of websites that contain or link to commercial material or that use program characters to sell...

  • Page 25
    ... regarding whether local news-sharing agreements and shared services agreements should count toward the FCC's ownership limitations. National Television Ownership The Communications Act and FCC regulations limit the number of television stations one entity may own or control nationally. Under...

  • Page 26
    ... for mobile wireless broadband, the FCC reallocate up to 120 MHz of spectrum from the broadcast television bands. Among other things, it recommends updating television service area and distance separation regulations, repacking current television station channel assignments, as well as sharing...

  • Page 27
    ... laws of the United States and other countries help protect our intellectual property rights. In particular, piracy of programming and films through unauthorized distribution of counterfeit DVDs, peer-to-peer file sharing and other platforms presents 25 Comcast 2011 Annual Report on Form 10-K

  • Page 28
    ...commit identity theft. Substantially all of the U.S. states and the District of Columbia have enacted security breach notification laws. These laws generally require that a business give notice to its customers whose financial account information has been Comcast 2011 Annual Report on Form 10-K 26

  • Page 29
    ...; Emergency Alert System requirements; equal employment opportunity; lottery programming; recordkeeping and public file access requirements; telemarketing; technical standards relating to operation of the cable systems and television stations; and regulatory fees. We are unable to predict how...

  • Page 30
    .... Technological changes are further intensifying and complicating the competitive landscape, as companies continue to emerge that offer services or devices that enable Internet video streaming and downloading of movies, television shows and other video program- Comcast 2011 Annual Report on Form 10...

  • Page 31
    ... and results of operations. New services and technologies that may compete with our video services include online services and devices that offer Internet video streaming and downloading of movies, television shows and other video programming that can be viewed on television sets and computers, as...

  • Page 32
    ... of video on demand services, DVRs and video programming on the Internet (including high-quality original video programming that may be viewed only through Internet streaming services), as well as increased access to various media through wireless devices, have the potential to reduce the viewing of...

  • Page 33
    ... decline in economic conditions, or an increase in price levels generally due to inflationary pressures, could adversely affect demand for any of our products and services and have a negative impact on our results of operations. For example, customers may reduce the level of cable services to which...

  • Page 34
    ... increased costs. Moreover, particularly with respect to long-term contracts for sports programming rights, our results of operations and cash flows over the term of a contract depend on a number of factors, including the strength of the advertising market, our audience size and the timing and...

  • Page 35
    ...their value or increasing the costs of enforcing our rights. See "Business - Legislation and Regulation - Other Areas of Regulation - Intellectual Property" above for additional information. Sales of DVDs have been declining. Several factors, including weak economic conditions, the maturation of the...

  • Page 36
    ... or properties may disrupt our business. Network and information systems and other technologies, including those related to our network management, customer service operations and programming delivery, are critical to our business activities. Network and information systems-related events...

  • Page 37
    .... If we fail to retain our on-air or creative talent, if the costs to retain such talent increase materially, if we need to make significant termination payments, or if these individuals lose their current appeal, our business could be adversely affected. 35 Comcast 2011 Annual Report on Form 10-K

  • Page 38
    ...outstanding shares of our Class B common stock and, accordingly, has considerable influence over our company and the ability (subject to certain restrictions through November 17, 2012) to transfer potential effective control by selling the Class B common stock. Comcast 2011 Annual Report on Form 10...

  • Page 39
    ... digital media center contains equipment that we own or lease, including equipment related to network origination, video transmission via satellite and terrestrial fiber optics, broadcast studios, post-production services and interactive television services. 37 Comcast 2011 Annual Report on Form...

  • Page 40
    ... locations in the United States and around the world for our NBCUniversal businesses, including property for our owned local television stations. In addition, we also own theme parks and related facilities in Orlando and Hollywood. The table below sets forth information as of December 31, 2011...

  • Page 41
    ... no established public trading market for our Class B common stock. Our Class B common stock can be converted, on a share for share basis, into Class A or Class A Special common stock. Our Board of Directors approved the following quarterly dividends. Dividend Per Share Month Declared 2011 January...

  • Page 42
    ... differential between the two classes of common stock, we currently expect to continue to repurchase primarily Class A Special common stock under our share repurchase program. Total Number of Shares Purchased as Part of Publicly Announced Authorization Maximum Dollar Value of Shares That May Yet Be...

  • Page 43
    ...group") consists of us (Class A and Class A Special common stock), as well as Cablevision Systems Corporation (Class A), DISH Network Corporation, DirecTV Inc. and Time Warner Cable Inc. (the "cable subgroup"), and Time Warner Inc., Walt Disney Company, Viacom Inc. (Class B), News Corporation (Class...

  • Page 44
    ... to Management's Discussion and Analysis of Financial Condition and Results of Operations included in this Annual Report for a discussion of the effects of the NBCUniversal transaction on the comparability of the information presented in this financial data. Comcast 2011 Annual Report on Form 10...

  • Page 45
    ...higher level of video service, including our HDTV service and DVR. Our video customers generally have the ability to view some of our On Demand content, browse program listings, and schedule and manage DVR recordings online and through our mobile applications for smartphones and tablets. In 2012, we...

  • Page 46
    ...(Golf Channel and NBC Sports Network (formerly VERSUS)); our 13 regional sports and news networks; our international cable networks (including CNBC Europe, CNBC Asia and our Universal Networks International portfolio of networks); our cable television production studio; and our related digital media...

  • Page 47
    ... networks and its NBC and Telemundo owned local television stations, Universal Pictures, the Universal Studios Hollywood theme park, and other related assets. We contributed our national cable networks, our regional sports and news networks, certain of our Internet businesses, including DailyCandy...

  • Page 48
    ... discount rates. The Comcast Content Business continues at its historical or carry-over basis. Consolidated Operating Results Year ended December 31 (in millions) 2011 2010 2009 % Change 2010 to 2011 % Change 2009 to 2010 Revenue Costs and Expenses: Operating costs and expenses Depreciation...

  • Page 49
    ... segment and our Cable Networks segment accounted for substantially all of the increase in consolidated operating costs and expenses. The remaining changes in consolidated operating costs and expenses for both 2011 and 2010 related to our other business activities, primarily Comcast Spectacor, and...

  • Page 50
    ... services and entertainment, news and information content to consumers. Technological changes are further intensifying and complicating the competitive landscape, as companies continue to emerge that offer services or devices that enable Internet video streaming and downloading of movies, television...

  • Page 51
    ... Olympic Games and Super Bowls. Our advertising revenue generally increases in the period of these broadcasts from increased demand for advertising time, and our operating costs and expenses also increase as a result of our production costs and amortization of the related rights fees. Our results of...

  • Page 52
    ...31 (in millions) 2011 2010 2009 % Change 2010 to 2011 % Change 2009 to 2010 Revenue Residential: Video High-speed Internet Voice Advertising Business services Other Total revenue Operating costs and expenses Programming Technical labor Customer service Marketing Other Total operating costs and...

  • Page 53
    ... including political advertising. Business Services Our business services revenue increased in 2011 and 2010 primarily due to increases in the number of customers across all cable services. Other We receive revenue related to franchise and other regulatory fees, our digital media center, commissions...

  • Page 54
    ...delivery platforms, such as online and through our mobile applications for smartphones and tablets; and as fees for retransmission of broadcast networks increase. Technical Labor Expenses Technical labor expenses include the internal and external labor costs to complete service call and installation...

  • Page 55
    ... ended December 31 Actual(a) Comcast Content Business 2010 Pro Forma(b) NBCUniversal Businesses Pro Forma Combined(c) Year ended December 31 % Change 2010 to 2011 (in millions) Revenue Cable Networks Broadcast Television Filmed Entertainment Theme Parks Headquarters, other and eliminations Total...

  • Page 56
    .... Advertising revenue is affected by the strength of the advertising market, general economic conditions and the success of our programming. Pro forma combined advertising revenue increased in 2011 primarily due to increases in the price of advertising units sold. Comcast 2011 Annual Report on Form...

  • Page 57
    ... in our consolidated financial statements but are included in the amounts presented above. Cable Networks Segment - Operating Costs and Expenses Operating costs and expenses in 2010 increased primarily due to higher programming and production expenses. 55 Comcast 2011 Annual Report on Form 10-K

  • Page 58
    ... operated the businesses since January 1, 2010. Broadcast Television Segment - Revenue Advertising Advertising revenue is generated from the sale of advertising time on our broadcast networks, owned local television stations and related digital media properties. Our advertising revenue is generally...

  • Page 59
    ...2010 Vancouver Olympics. Excluding the impact of the 2010 Vancouver Olympics, operating costs and expenses increased in 2011 primarily due to higher programming and production expenses associated with a greater number of original primetime series in 2011. 57 Comcast 2011 Annual Report on Form 10-K

  • Page 60
    ... dates are determined by several factors, including production schedules, vacation and holiday periods, and the timing of competitive releases. Theatrical revenue is also affected by the number of exhibition screens, ticket prices, the percentage of ticket sale retention by theatrical exhibitors and...

  • Page 61
    ... for consumer discretionary spending and leisure time. DVD sales have also been negatively affected by an increasing shift by consumers toward subscription rental services, discount rental kiosks and digital forms of entertainment, such as video on demand services, which generate less revenue per...

  • Page 62
    ... and marketing costs. Our pro forma combined operating costs and expenses increased in 2011 primarily due to additional variable costs associated with increases in attendance and per capita spending at our Universal theme parks in Orlando and Hollywood. Comcast 2011 Annual Report on Form 10-K 60

  • Page 63
    ... • the change in the time value component of the derivative value during the period • the security to which the derivative relates changed due to a corporate reorganization of the issuing company to a security with a different volatility rate 61 Comcast 2011 Annual Report on Form 10-K

  • Page 64
    ... in business opportunities, and to return capital to shareholders. The cash flows generated from our Cable Communications segment and other businesses are used to invest in their core businesses and return capital to shareholders. The cash flows generated from Comcast 2011 Annual Report on Form 10...

  • Page 65
    ... million of commercial paper. We also agreed to share with GE certain tax benefits as they are realized, related to the form and structure of the transaction. As of the close of the NBCUniversal transaction on January 28, 2011, we consolidated $9.1 billion of NBCUniversal senior debt securities with...

  • Page 66
    ...(in millions) 2011 2010 2009 Cable distribution system Customer premises equipment Vehicles and other equipment Buildings and building improvements Land Total $ 1,715 2,594 446 51 - $ 4,806 $ 1,553 2,864 388 48 - $ 4,853 $ 1,570 3,013 399 48 1 $ 5,031 Comcast 2011 Annual Report on Form 10-K 64

  • Page 67
    ... financial statements for additional information on our acquisitions. Proceeds from Sales of Businesses and Investments In 2011, proceeds from sales of businesses and investments consisted primarily of the sale of the Philadelphia 76ers, NBCUniversal's sale of a Spanish-language local television...

  • Page 68
    ...television personalities and executives, and various other television commitments. Purchase obligations do not include contracts with immaterial future commitments. (c) Other long-term obligations consist primarily of prepaid forward sale agreements of equity securities we hold; subsidiary preferred...

  • Page 69
    ... our Board of Directors, and the Audit Committee has reviewed our disclosures relating to them, which are presented below. See Note 2 to our consolidated financial statements for a discussion of our accounting policies with respect to these and other items. 67 Comcast 2011 Annual Report on Form 10...

  • Page 70
    ... we receive from the right to solicit new customers and to market new services, such as advanced video services and high-speed Internet and voice services, in a particular service area. The amounts we record for cable franchise rights are primarily a result of cable system acquisitions. Typically...

  • Page 71
    ... our consolidated financial position but could possibly be material to our consolidated results of operations or cash flow for any one period. As of December 31, 2011, our uncertain tax positions and related accrued interest were $1.4 billion and $698 million, respectively. Film and Television Costs...

  • Page 72
    ...analysis of sales of comparable properties. The replacement cost approach used for depreciable property and equipment measures the value of an asset by estimating the cost to acquire or construct comparable assets and adjusts for age and condition of the asset. Comcast 2011 Annual Report on Form 10...

  • Page 73
    ... financial instruments was a decrease in our interest expense of approximately $136 million, $132 million and $104 million, respectively. Interest rate derivative financial instruments may have a significant effect on our interest expense in the future. 71 Comcast 2011 Annual Report on Form...

  • Page 74
    ...for additional information on our accounting policies for derivative financial instruments and Note 10 to our consolidated financial statements for additional information on our derivative financial instruments. Foreign Exchange Risk Management NBCUniversal has significant operations in a number of...

  • Page 75
    ... the investments that we accounted for as available-for-sale or trading securities were substantially offset by the changes in the fair values of the equity derivative financial instruments. See Note 2 to our consolidated financial statements for additional information on our accounting policies for...

  • Page 76
    ... Public Accounting Firm Consolidated Balance Sheet Consolidated Statement of Income Consolidated Statement of Comprehensive Income Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Notes to Consolidated Financial Statements 75 76 77 78 79 80 81 82 Comcast 2011 Annual...

  • Page 77
    ... consolidated financial statements be included in this Form 10-K. Brian L. Roberts Chairman and Chief Executive Officer Michael J. Angelakis Vice Chairman and Chief Financial Officer Lawrence J. Salva Senior Vice President, Chief Accounting Officer and Controller 75 Comcast 2011 Annual Report...

  • Page 78
    ... an opinion on these financial statements and an opinion on the Company's internal control over financial reporting based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and...

  • Page 79
    ... Other current assets Total current assets Film and television costs Investments Property and equipment, net Franchise rights Goodwill Other intangible assets, net Other noncurrent assets, net Total assets Liabilities and Equity Current Liabilities: Accounts payable and accrued expenses related to...

  • Page 80
    ... to Comcast Corporation shareholders Dividends declared per common share attributable to Comcast Corporation shareholders See accompanying notes to consolidated financial statements. 8,207 (3,050) 5,157 (997) $ 4,160 $ $ $ 1.51 1.50 0.45 $ 0.378 $ 0.297 Comcast 2011 Annual Report on Form 10...

  • Page 81
    ... attributable to Comcast Corporation See accompanying notes to consolidated financial statements. $ 5,157 4 (25) $ 3,668 9 (80) $ 3,628 8 - (8) 20 (70) (12) 5,066 (997) 38 $ 4,107 (2) 34 (13) (1) 3,615 (33) - $ 3,582 (4) 34 25 4 3,695 10 - $ 3,705 79 Comcast 2011 Annual Report on Form 10-K

  • Page 82
    ...sales of businesses and investments Purchases of investments Other Net cash provided by (used in) investing activities Financing Activities Proceeds from (repayments of) short-term borrowings, net Proceeds from borrowings Repurchases and repayments of debt Repurchases and retirements of common stock...

  • Page 83
    ... Comprehensive controlling Cost Income (Loss) Interests (in millions) Retained Earnings Total Equity Balance, January 1, 2009 $ Stock compensation plans Repurchase and retirement of common stock Employee stock purchase plan Dividends declared Other comprehensive income (loss) Sale (purchase) of...

  • Page 84
    ...(Golf Channel and NBC Sports Network (formerly VERSUS)); our 13 regional sports and news networks; our international cable networks (including CNBC Europe, CNBC Asia and our Universal Networks International portfolio of networks); our cable television production studio; and our related digital media...

  • Page 85
    ...Policies Basis of Consolidation The accompanying consolidated financial statements include (i) all of our accounts, (ii) all entities in which we have a controlling voting interest ("subsidiaries") and (iii) variable interest entities ("VIEs") required to be consolidated in accordance with generally...

  • Page 86
    ..., as applicable, and establish a new cost basis for the investment. For our AFS and cost method investments, we record the impairment to investment income (loss), net. For our equity method investments, we record the impairment to other income (expense), net. Comcast 2011 Annual Report on Form 10...

  • Page 87
    ..., labor and indirect costs, in accordance with accounting guidance related to cable television companies. All costs incurred in connection with subsequent service disconnections and reconnections are expensed as they are incurred. We record depreciation using the straight-line method over the asset...

  • Page 88
    ... consist primarily of customer relationships acquired in business combinations, cable franchise renewal costs, contractual operating rights, intellectual property rights and software. These assets are amortized primarily on a straight-line basis over their estimated useful lives or the terms of the...

  • Page 89
    ... to our video, high-speed Internet and voice services ("cable services") and from the sale of advertising. We recognize revenue from cable services as each service is provided. We manage credit risk by screening applicants through the use of internal customer information, identification verification...

  • Page 90
    ...them over the term of the contract as a reduction to programming expenses, which are included in operating costs and expenses. Advertising Expenses Advertising costs are expensed as incurred. See Note 17 for additional information on advertising costs incurred. Comcast 2011 Annual Report on Form 10...

  • Page 91
    ... our employee stock purchase plans. For stock options and RSUs, associated costs are based on an award's estimated fair value at the date of grant and are recognized over the period in which any related services are provided. See Note 15 for additional information on our share-based compensation...

  • Page 92
    ... sheet to programming rights, other current assets, film and television costs, other intangible assets, net and other noncurrent assets, net to adjust to classifications used in the current year as a result of the acquisition of the NBCUniversal businesses. Comcast 2011 Annual Report on Form 10...

  • Page 93
    ...average market price of our Class A common stock or our Class A Special common stock, as applicable. Diluted EPS for 2011, 2010 and 2009 excludes approximately 45 million, 168 million and 195 million, respectively, of potential common shares related to our share-based compensation plans, because the...

  • Page 94
    ... during the year, which resulted in a decrease in goodwill of $1.1 billion from our initial allocation of purchase price. The changes related primarily to revisions in the estimated fair value of investments, property and equipment, and intangible assets. Comcast 2011 Annual Report on Form 10-K 92

  • Page 95
    ... we maintained control of the Comcast Content Business, the excess of fair value received over historical book value and the related tax impact were recorded to additional paid-in capital. We agreed to share with GE certain tax benefits as they are realized that relate to the form and structure...

  • Page 96
    ... the NBCUniversal transaction. The incremental expenses related to legal, accounting and valuation services and investment banking fees are included in operating costs and expenses. We also incurred certain financing costs and other shared costs with GE associated with NBCUniversal's debt facilities...

  • Page 97
    ... if both the NBCUniversal transaction and the Universal Orlando transaction occurred on January 1, 2010. This information is based on historical results of operations, adjusted for the allocation of purchase price and other acquisition accounting adjust- 95 Comcast 2011 Annual Report on Form 10-K

  • Page 98
    ...amortization In-production and in-development Programming rights, less amortization Less: Current portion of programming rights Film and television costs 1,002 201 1,203 2,061 6,214 987 $ 5,227 94 43 137 445 582 122 $ 460 Based on management's estimates of ultimate revenue as of December 31, 2011...

  • Page 99
    ... investments in A&E Television Networks and MSNBC.com. This difference is amortized in equity in net income (losses) of investees, net over a period of less than 20 years. See below for additional information on certain of our larger equity method investments. 97 Comcast 2011 Annual Report on Form...

  • Page 100
    ... the total cost to purchase the licenses was $1.3 billion. We account for this joint venture as an equity method investment based on its governance structure, notwithstanding our majority interest. In December 2011, SpectrumCo entered into an agreement to sell its advanced wireless services spectrum...

  • Page 101
    ...2011 Gross Carrying Amount Gross Carrying Amount 2010 December 31 (in millions) Accumulated Amortization Accumulated Amortization Finite-Lived Intangible Assets: Customer relationships Cable franchise renewal costs and contractual operating rights Software...Comcast 2011 Annual Report on Form 10-K

  • Page 102
    ... certain financial ratios based on our debt and our operating income before depreciation and amortization. We were in compliance with all financial covenants for all periods presented. See Note 22 for additional information on our subsidiary guarantee structures. Comcast 2011 Annual Report on Form...

  • Page 103
    ... 6.75% notes due 2011 Comcast 5.5% notes due 2011 Universal Orlando term loan Comcast 7% notes due 2055 Universal Orlando 8.875% notes due 2015 Universal Orlando 10.875% notes due 2016 Other Total $ 1,000 750 801 345 140 79 101 $ 3,216 During the first quarter of 2012, we plan to redeem $563...

  • Page 104
    ... from price fluctuations in the common stock of some of our investments by using equity derivative financial instruments embedded in other contracts, such as prepaid forward sale agreements, whose values, in part, are derived from the market value of certain publicly traded common stock. We manage...

  • Page 105
    ..., each of which is recorded to investment income (loss), net. As of December 31, 2011 and 2010, the fair value of our prepaid forward sale agreement designated as a fair value hedge was an asset of $4 million and a liability of $29 million, respectively. 103 Comcast 2011 Annual Report on Form 10-K

  • Page 106
    ... (fixed to variable) Long-term debt - interest rate swap agreements (fixed to variable) Investment Income (Loss), Net: Mark to market adjustments on derivative component of prepaid forward sale agreements Unrealized gains (losses) on securities underlying prepaid forward sale agreements Gain (loss...

  • Page 107
    ... means for substantially the full term of the financial instrument. • Level 3: Consists of financial instruments whose values are determined using pricing models that use significant inputs that are primarily unobservable, discounted cash flow method- 105 Comcast 2011 Annual Report on Form 10-K

  • Page 108
    ...of a film production is determined using Level 3 inputs, primarily an analysis of future expected cash flows. Impairment charges of $57 million were recorded in 2011 as a result of this analysis. In 2010, we recorded impairment charges to goodwill of $76 Comcast 2011 Annual Report on Form 10-K 106

  • Page 109
    ... interest in the Comcast Content Business resulted in an increase of $1.7 billion, net of taxes, to additional paid-in capital of Comcast Corporation. GE's 49% interest in NBCUniversal Holdings is recorded as a redeemable noncontrolling interest in our consolidated financial statements due to the...

  • Page 110
    ...service provided before the close of the NBCUniversal transaction. Certain covered employees also retain the right, following retirement, to elect to participate in corresponding plans sponsored by GE. To the extent that NBCUniversal's employees...75-5.25% Comcast 2011 Annual Report on Form 10-K 108

  • Page 111
    ...plans where we consider our contributions to be individually significant and the largest plans in which we participate are funded at a level of 80 percent or greater. The total contributions we made to multiemployer benefit plans were $42 million during 2011. 109 Comcast 2011 Annual Report on Form...

  • Page 112
    ... relates to rights that have vested or accumulated. During 2011, 2010 and 2009, we recorded $128 million, $67 million and $81 million, respectively, of severance costs. The increase in severance costs in 2011 was primarily related to the NBCUniversal transaction. Comcast 2011 Annual Report on Form...

  • Page 113
    ... 31, 2010 Stock compensation plans Repurchase and retirement of common stock Employee stock purchase plan Balance, December 31, 2011 2,061 3 (5) 4 2,063 6 - 3 2,072 20 - 3 2,095 810 - (45) - 765 - (70) - 695 1 (95) - 601 9 - - - 9 - - - 9 - - - 9 111 Comcast 2011 Annual Report on Form 10-K

  • Page 114
    ... RSUs to certain employees and directors. We grant these awards under various plans. Additionally, through our employee stock purchase plans, employees are able to purchase shares of Comcast Class A common stock at a discount through payroll deductions. Comcast 2011 Annual Report on Form 10-K 112

  • Page 115
    ... issuance of shares, any income tax benefit realized in excess of the amount previously recognized for financial reporting purposes associated with compensation expense is presented as a financing activity rather than as an operating activity in our consolidated statement of cash flows. In 2011 and...

  • Page 116
    ... 31, 2011. These stock options were issued under a stock option liquidity program in 2005 and will expire by the end of 2012. Cash received from options exercised under the stock option liquidity program during the year ended December 31, 2011 was $60 million. Comcast 2011 Annual Report on Form 10...

  • Page 117
    ...purchased under the plan as share-based compensation expense. In 2011, 2010 and 2009, the employee costs associated with participation in the plans were satisfied with payroll deductions of approximately $58 million, $50 million and $48 million, respectively. 115 Comcast 2011 Annual Report on Form...

  • Page 118
    ...effectively settled tax positions, net Accrued interest on uncertain and effectively settled tax positions, net Other Income tax expense $ 2,872 354 89 (410) - 77 66 2 $ 3,050 $ 2,136 204 - 2 - 37 60 (3) $ 2,436 $ 1,787 174 - - (151) (178) (120) (34) $ 1,478 Comcast 2011 Annual Report on Form 10...

  • Page 119
    ... of investments Differences between book and tax basis of indexed debt securities Differences between book and tax outside basis of NBCUniversal 29,185 616 560 1,214 31,575 Net deferred tax liability $ 29,707 $ 28,072 Changes in net deferred income tax liabilities in 2011 that were not recorded...

  • Page 120
    ... for doubtful accounts Receivables, net Operating Costs and Expenses Year ended December 31 (in millions) 2011 $ 4,978 425 202 $ 4,351 $ 2,028 - 173 $ 1,855 2010 2009 Programming and production Cable Communications technical labor Cable Communications customer service Advertising, marketing and...

  • Page 121
    ...(see Note 4 for additional information on the Universal Orlando transaction) • recorded a liability of $305 million for a quarterly cash dividend of $0.1125 per common share paid in January 2012, which is a noncash financing activity • acquired $1 billion of property and equipment and intangible...

  • Page 122
    ... our minimum annual rental commitments for office space, equipment and transponder service agreements under operating leases. Programming and talent commitments include acquired film and television programming, including U.S. television rights to the future Olympic Games through 2020, NBC's Sunday...

  • Page 123
    ... U.S. television rights to the 2012 London Olympics. This programming commitment was considered an unfavorable contract in the application of acquisition accounting for the NBCUniversal transaction. We recorded a liability related to this contract which will be reversed in our consolidated financial...

  • Page 124
    ... the remaining claims pending arbitration. The West Virginia Attorney General also filed a complaint in West Virginia state court in July 2009 alleging that we improperly "tie" the rental of set-top boxes to the provision of digital cable services in violation of the West Virginia Antitrust Act and...

  • Page 125
    ... with respect to such actions is not expected to materially affect our financial position, results of operations or cash flows, any litigation resulting from any such legal proceedings or claims could be time consuming, costly and injure our reputation. 123 Comcast 2011 Annual Report on Form 10-K

  • Page 126
    Note 20: Financial Data by Business Segment Following the NBCUniversal transaction, we present our operations in five reportable segments; Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. The Comcast Content Business is presented with NBCUniversal's ...

  • Page 127
    ... the businesses of Comcast Interactive Media that were not contributed to NBCUniversal. For the years ended December 31, 2011, 2010 and 2009, Cable Communications segment revenue was derived from the following sources: 2011 Residential: Video High-speed Internet Voice Advertising Business services...

  • Page 128
    ... 2015 and 2016. Comcast Corporation does not guarantee this obligation. The operations of NBCUniversal and Universal Orlando are presented in the nonguarantor subsidiaries column. Our condensed consolidating financial information is presented in the tables below. Comcast 2011 Annual Report on Form...

  • Page 129
    ... current assets Film and television costs Investments Investments in and amounts due from subsidiaries eliminated upon consolidation Property and equipment, net Franchise rights Goodwill Other intangible assets, net Other noncurrent assets, net Total assets Liabilities and Equity Accounts payable...

  • Page 130
    ... current assets Film and television costs Investments Investments in and amounts due from subsidiaries eliminated upon consolidation Property and equipment, net Franchise rights Goodwill Other intangible assets, net Other noncurrent assets, net Total assets Liabilities and Equity Accounts payable...

  • Page 131
    ... Consolidating Statement of Income For the Year Ended December 31, 2011 Combined CCHMO Parents NonGuarantor Subsidiaries Elimination and Consolidation Adjustments Consolidated Comcast Corporation (in millions) Comcast Parent CCCL Parent Comcast Holdings Revenue: Service revenue Management fee...

  • Page 132
    ... taxes Income tax (expense) benefit Net income (loss) from consolidated operations Net (income) loss attributable to noncontrolling interests Net income (loss) attributable to Comcast Corporation 3,262 373 3,635 - $ 3,635 $ 4,480 $ 2,903 $ 4,620 $ (16,760) Comcast 2011 Annual Report on Form...

  • Page 133
    ... Income tax (expense) benefit Net income (loss) from consolidated operations Net (income) loss attributable to noncontrolling interests Net income (loss) attributable to Comcast Corporation 3,317 321 3,638 - $ 3,638 $ 4,480 $ 3,130 $ 4,730 $ (17,202) 131 Comcast 2011 Annual Report on Form 10...

  • Page 134
    ... December 31, 2011 Combined CCHMO Parents NonGuarantor Subsidiaries Elimination and Consolidation Adjustments Consolidated Comcast Corporation (in millions) Comcast Parent CCCL Parent Comcast Holdings Net cash provided by (used in) operating activities Investing Activities: Net transactions...

  • Page 135
    ...cash acquired Proceeds from sales of businesses and investments Purchases of investments Other Net cash provided by (used in) investing activities Financing Activities: Proceeds from borrowings Repurchases and repayments of debt Repurchases and retirements of common stock Dividends paid Issuances of...

  • Page 136
    ...cash acquired Proceeds from sales of businesses and investments Purchases of investments Other Net cash provided by (used in) investing activities Financing Activities: Proceeds from borrowings Repurchases and repayments of debt Repurchases and retirements of common stock Dividends paid Issuances of...

  • Page 137
    ... (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Item 9B: Other Information None. 135 Comcast 2011 Annual Report on Form 10-K

  • Page 138
    ... 2009. Arthur R. Block has served as a Senior Vice President and our General Counsel and Secretary for more than five years. Lawrence J. Salva has served as a Senior Vice President and our Controller and Chief Accounting Officer for more than five years. Comcast 2011 Annual Report on Form 10-K 136

  • Page 139
    ... Accountant Fees and Services We incorporate the information required by this item by reference to our 2012 Proxy Statement. We intend to file our 2012 Proxy Statement for our annual meeting of shareholders with the SEC on or before April 30, 2012. 137 Comcast 2011 Annual Report on Form 10...

  • Page 140
    ... Data, and a list of the consolidated financial statements are found on page 74 of this report. Schedule II, Valuation and Qualifying Accounts, is found on page 145 of this report; all other financial statement schedules are omitted because the required information is not applicable, or because the...

  • Page 141
    ... our Annual Report on Form 10-K for the year ended December 31, 2010). Comcast-NBCUniversal 2011 Employee Stock Purchase Plan (incorporated by reference to Appendix A to our Definitive Proxy Statement on Schedule 14A filed on April 1, 2011). Comcast Corporation Supplemental Executive Retirement Plan...

  • Page 142
    ... to Employment Agreement between Comcast Corporation and Ralph J. Roberts dated as of January 1, 2008 (incorporated by reference to Exhibit 99.1 to our Current Report on Form 8-K filed on February 13, 2008). Compensation and Deferred Compensation Agreement and Stock Appreciation Bonus Plan between...

  • Page 143
    ... 28, 2011, to Master Agreement, dated as of December 3, 2009, by and among General Electric Company, NBC Universal, Inc. (n/k/a NBCUniversal Media, LLC), Comcast Corporation and Navy, LLC (n/k/a NBCUniversal, LLC) (incorporated by reference to Exhibit 10.49 to our Annual Report on Form 10-K for...

  • Page 144
    .... The following financial statements from Comcast Corporation's Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 22, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheet; (ii...

  • Page 145
    ...(Principal Executive Officer) Founder; Chairman Emeritus of the Board Vice Chairman and CFO (Principal Financial Officer) Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer) Director February 22, 2012 February 22, 2012 February 22, 2012 February 22, 2012...

  • Page 146
    ... statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein. /s/ Deloitte & Touche LLP Philadelphia, Pennsylvania February 22, 2012 Comcast 2011 Annual Report on Form...

  • Page 147
    ... Ended December 31 (in millions) 2011 Allowance for doubtful accounts Sales returns and allowances 2010 Allowance for doubtful accounts 2009 Allowance for doubtful accounts $ 173 - $ 175 $ 190 306 536 327 385 277 111 329 400 $ 202 425 $ 173 $ 175 145 Comcast 2011 Annual Report on Form 10-K

  • Page 148
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