Comcast 2012 Annual Report Download - page 65

Table of Contents
Equity in Net Income (Losses) of Investees, Net
The change in equity in net income (losses) of investees, net in 2012 was primarily due to income of $876 million related to the
SpectrumCo transaction. See Note 6 to our consolidated financial statements for additional information. The change in equity in net
income (losses) of investees, net in 2011 was primarily due to the acquisition of NBCUniversal and its equity method investments,
offset by losses related to our investment in Clearwire LLC.
Other Income (Expense), Net
The change in other income (expense), net in 2012 was primarily due to a $1 billion gain related to the A&E Television Networks
transaction. See Note 6 to our consolidated financial statements for additional information. Other income (expense), net in 2012 and
2011 included $186 million and $57 million, respectively, of expenses related to fair value adjustments to contractual obligations that
involve financial interests held by third parties in certain of our businesses. The change in other income (expense), net in 2011 also
included the impact of the absence of income in 2011 associated with the sale of one of our equity method investments and income
related to the resolution of a contingency of an acquired company, which were each recorded in 2010.
Consolidated Income Tax Expense
Our effective income tax rate in 2012, 2011 and 2010 was 32.3%, 37.2% and 39.9%, respectively. Income tax expense reflects an
effective income tax rate that differs from the federal statutory rate primarily due the state income taxes, uncertain tax positions, and
in 2012 and 2011, due to the partnership structure of NBCUniversal, and foreign income taxes. Our effective income tax rate is
impacted by NBCUniversal’s partnership structure in that our income tax expense includes taxes on only 51% of NBCUniversal’
s
pretax income. In 2012, our effective income tax rate decreased due to proportionately higher pretax income at NBCUniversal, which
included NBCUniversal’
s gain on the sale of its equity interest in A&E Television Networks. In addition, our 2012 income tax expense
decreased by $109 million and our 2011 income tax expense increased by $137 million due to certain changes in state tax laws that
became effective in 2012 and 2011, respectively. Our income tax expense in the future may continue to be impacted by changes in
NBCUniversal pretax income, adjustments to uncertain tax positions and related interest and changes in tax laws. We expect our
2013 annual effective tax rate to be in the range of 35% to 40%, absent changes in tax laws or significant changes in uncertain tax
positions.
Consolidated Net (Income) Loss Attributable to Noncontrolling Interests
GE’
s 49% common equity interest in NBCUniversal Holdings is recorded as a redeemable noncontrolling interest in our consolidated
financial statements due to the redemption provisions outlined in Note 4 to our consolidated financial statements. Net (income) loss
attributable to noncontrolling interests includes GE’
s allocated share of the earnings of NBCUniversal Holdings and NBCUniversal.
The increase in net (income) loss attributable to noncontrolling interests in 2012 was primarily due to GE’
s allocated share of the
increase in earnings of NBCUniversal during the current year. The increase in net (income) loss attributable to noncontrolling
interests in 2011 was primarily due to the NBCUniversal transaction.
Liquidity and Capital Resources
Our businesses generate significant cash flows from operating activities. We believe that we will be able to continue to meet our
current and long-term liquidity and capital requirements, including fixed charges, as well as the acquisition of GE’
s 49% common
equity interest in NBCUniversal, through our cash flows from operating activities, existing cash, cash equivalents and investments,
available borrowings under our existing credit facilities, and our ability to obtain future external financing. We anticipate that we will
continue to use a sub-
Comcast 2012 Annual Report on Form 10
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