Comcast 2011 Annual Report Download - page 91

Share-Based Compensation
Our share-based compensation consists of awards of stock options and restricted share units (“RSUs”) and
the discounted sale of company stock to employees through 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.
Postretirement and Pension Benefits
We provide postretirement medical benefits for substantially all of our employees who meet certain age and
service requirements. Following the close of the NBCUniversal transaction on January 28, 2011, NBCUni-
versal established new defined benefit plans covering the majority of its U.S. employees (the “qualified plan”)
and executives (the “nonqualified plan”) and other postretirement plans, such as medical and life insurance
plans. NBCUniversal’s new defined benefit pension plans are currently unfunded noncontributory plans. The
qualified plan is not open to new participants.
As of December 31, 2011, we also sponsored two pension plans that together provided benefits to sub-
stantially all former AT&T Broadband employees. Future benefits for both pension plans have been frozen.
Pension and other postretirement benefits are based on formulas that reflect the employees’ years of service,
compensation during their employment period and participation in the plans. The expense we recognize
related to our benefit plans is determined using certain assumptions, including the expected long-term rate of
return on plan assets and discount rate, among others. We recognize the funded or unfunded status of our
defined benefit and other postretirement plans, other than multiemployer plans, as an asset or liability in our
consolidated balance sheet and recognize changes in the funded status in the year in which the changes
occur through accumulated other comprehensive income (loss).
See Note 13 for additional information on our postretirement and pension benefits.
Income Taxes
We base our provision for income taxes on our current period income, changes in our deferred income tax
assets and liabilities, income tax rates, changes in estimates of our uncertain tax positions, and tax planning
opportunities available in the jurisdictions in which we operate. We recognize deferred tax assets and
liabilities when there are temporary differences between the financial reporting basis and tax basis of our
assets and liabilities and for the expected benefits of using net operating loss carryforwards. When a change
in the tax rate or tax law has an impact on deferred taxes, we apply the change based on the years in which
the temporary differences are expected to reverse. We record the change in our consolidated financial state-
ments in the period of enactment.
Income tax consequences that arise in connection with a business combination include identifying the tax
basis of assets and liabilities acquired and any contingencies associated with uncertain tax positions
assumed or resulting from the business combination. Deferred tax assets and liabilities related to temporary
differences of an acquired entity are recorded as of the date of the business combination and are based on
our estimate of the ultimate tax basis that will be accepted by the various taxing authorities. We record
liabilities for contingencies associated with prior tax returns filed by the acquired entity based on criteria set
forth in the accounting guidance related to accounting for uncertainty in income taxes. We adjust the deferred
tax accounts and the liabilities periodically to reflect any revised estimated tax basis and any estimated
settlements with the various taxing authorities. The effects of these adjustments are recorded to income tax
expense.
We classify interest and penalties, if any, associated with our uncertain tax positions as a component of
income tax expense.
89 Comcast 2011 Annual Report on Form 10-K