Comcast 2011 Annual Report Download - page 37

Labor disputes, whether involving employees or sports organizations, may disrupt our operations and
adversely affect our business.
Many of NBCUniversal’s employees, including writers, directors, actors, technical and production personnel
and others, as well as some of our on-air and creative talent and cable communications’ employees, are
covered by collective bargaining agreements or works councils. If we are unable to reach agreement with a
labor union before the expiration of a collective bargaining agreement, our employees who were covered by
that agreement may have a right to strike or take other actions that could adversely affect us. Moreover,
many of NBCUniversal’s collective bargaining agreements are industry-wide agreements, and we may lack
practical control over the negotiations and terms of the agreements. A labor dispute involving our employees
may result in work stoppages or disrupt our operations and reduce our revenue, and resolution of disputes
may increase our costs. There can be no assurance that we will renew our collective bargaining agreements
as they expire or that we can renew them on favorable terms or without any work stoppages.
In addition, our cable and broadcast networks have programming rights agreements of varying scope and
duration with various sports organizations to broadcast and produce sporting events, including certain NFL,
NHL, NBA and MLB games. Labor disputes in these and other sports organizations could have an adverse
impact on our businesses, cash flows and results of operations.
We face risks arising from the outcome of various litigation matters.
We are subject to various legal proceedings and claims, including those referred to in “Legal Proceedings”
and those arising in the ordinary course of business, including regulatory and administrative proceedings,
claims and audits. While we do not expect the final disposition of any of these litigation matters will have a
material effect on our financial condition, an adverse outcome in one or more of these matters could be mate-
rial to our consolidated results of operations and cash flows for any one period, and any litigation resulting
from any such legal proceedings could be time-consuming, costly and injure our reputation. Further, no
assurance can be given that any adverse outcome would not be material to our financial condition.
Acquisitions and other strategic transactions present many risks, and we may not realize the finan-
cial and strategic goals that were contemplated at the time of any transaction.
From time to time we make acquisitions and investments and enter into other strategic transactions. In 2011,
in addition to the NBCUniversal transaction, we entered into agency agreements with Verizon Wireless provid-
ing, among other things, for Verizon Wireless’ sale of our cable services and our sale of Verizon Wireless’
products and services. We also formed an innovation joint venture with Verizon Wireless and two other cable
operators to develop technology to better integrate wireline and wireless products and services. In con-
nection with these and other acquisitions and strategic transactions, we may incur unanticipated expenses,
fail to realize anticipated benefits, have difficulty incorporating the acquired businesses, disrupt relationships
with current and new employees, customers and vendors, incur significant indebtedness, or have to delay or
not proceed with announced transactions. The occurrence of any of the foregoing events could have a
material adverse effect on our business, results of operations, cash flows and financial condition.
The loss of key management personnel or popular on-air and creative talent could have an adverse
effect on our businesses.
We rely on certain key management personnel in the operation of our businesses. While we maintain long-
term and emergency transition plans for key management personnel and believe we could either identify
internal candidates or attract outside candidates to fill any vacancy created by the loss of any key manage-
ment personnel, the loss of one or more of our key management personnel could have a negative impact on
our business. In addition, our cable networks, broadcast television and filmed entertainment busi-
nesses depend on the abilities and expertise of our on-air and creative talent. 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