Comcast 2011 Annual Report Download - page 65

NBCUniversal are used to invest in its core businesses and to fund potential future redemptions of GE’s
noncontrolling interest in NBCUniversal.
We maintain significant availability under our lines of credit and our commercial paper programs to meet our
short-term liquidity requirements. As of December 31, 2011, $6.5 billion was available under Comcast’s and
Comcast Cable Communications’ revolving credit facilities and $934 million was available under NBCUni-
versal’s revolving credit facility.
We and our Cable Communications subsidiaries that have provided guarantees are subject to the covenants
and restrictions set forth in the indentures governing Comcast’s public debt securities and in the credit
agreements governing Comcast’s and Comcast Cable Communications’ credit facilities (see Note 22 to our
consolidated financial statements). NBCUniversal is subject to the covenants and restrictions set forth in the
indentures governing its public debt securities and in the credit agreement governing its credit facility. We test
for compliance with the covenants for each of our credit facilities on an ongoing basis. The only financial
covenant in each of our credit facilities pertains to leverage (ratio of debt to operating income before deprecia-
tion and amortization). As of December 31, 2011, we and NBCUniversal each met this financial covenant by a
significant margin. Neither we nor NBCUniversal expect to have to further reduce debt or improve operating
results in order to continue to comply with this financial covenant.
NBCUniversal Transaction
We made a cash payment of $6.2 billion to GE at the close of the NBCUniversal transaction. We funded this
payment with cash on hand and through the issuance of $650 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 maturities ranging from 2014 to 2041. We do not guarantee
NBCUniversal’s debt obligations. Any future redemptions of GE’s stake in NBCUniversal Holdings are
expected to be funded primarily through NBCUniversal’s cash flows from operating activities and its borrow-
ing capacity. If any borrowings by NBCUniversal to fund either of GE’s two potential redemptions would result
in NBCUniversal exceeding a certain leverage ratio or losing investment grade status or if it cannot otherwise
fund such redemptions, we are committed to fund up to $2.875 billion in cash or our common stock for each
of the two potential redemptions (for an aggregate of up to $5.75 billion, with amounts not used in the first
redemption to be available for the second redemption) to the extent NBCUniversal Holdings cannot fund the
redemptions.
Universal Orlando Transaction
On July 1, 2011, NBCUniversal acquired the remaining 50% equity interest in Universal Orlando that it did not
already own for $1 billion. NBCUniversal funded this transaction with cash on hand, borrowings under its
revolving credit facility and a $250 million 1 year note due to us, which was repaid in December 2011. Borrow-
ings under the NBCUniversal revolving credit facility, along with cash on hand at Universal Orlando, were
used to terminate Universal Orlando’s existing $801 million term loan immediately following the acquisition.
Receivables Monetization
NBCUniversal monetizes certain of its accounts receivable under programs with a syndicate of banks. The
effects of NBCUniversal’s monetization transactions are a component of net cash provided by operating activ-
ities in our consolidated statement of cash flows. See Note 18 to our consolidated financial statements for
additional information.
Film Financing
In response to the high cost of producing films, we have entered into film cofinancing arrangements with third
parties to jointly finance or distribute certain of our film productions. These arrangements can take various
63 Comcast 2011 Annual Report on Form 10-K