Comcast 2012 Annual Report Download - page 75

Table of Contents
See Note 2 to our consolidated financial statements for additional information on our accounting policies for derivative financial
instruments.
Equity Price Risk Management
We are exposed to the market risk of changes in the equity prices of our investments in marketable securities. We enter into various
derivative transactions in accordance with our policies to manage the volatility related to these exposures. Through market value and
sensitivity analyses, we monitor our equity price risk exposures to ensure that the instruments are matched with the underlying
assets or liabilities, reduce our risks relating to equity prices, and maintain a high correlation to the risk inherent in the hedged item.
To limit our exposure to and the benefits from price fluctuations in the common stock of some of our investments, we use equity
derivative financial instruments. These derivative financial instruments, which are accounted for at fair value, may include equity
collar agreements, prepaid forward sale agreements and indexed debt instruments.
Except as described above in Item 7 under the heading “Investment Income (Loss), Net,”
the changes in the fair value of 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 derivative financial instruments and Note 6 to our consolidated financial statements for additional
information on our investments.
Counterparty Credit Risk Management
We manage the credit risks associated with our derivative financial instruments through diversification and the evaluation and
monitoring of the creditworthiness of the counterparties. Although we may be exposed to losses in the event of nonperformance by
the counterparties, we do not expect such losses, if any, to be significant. We have agreements with certain counterparties that
include collateral provisions. These provisions require a party with an aggregate unrealized loss position in excess of certain
thresholds to post cash collateral for the amount in excess of the threshold. The threshold levels in our collateral agreements are
based on our and the counterparties’
credit ratings. As of December 31, 2012 and 2011, neither we nor any of the counterparties
were required to post collateral under the terms of the agreements.
Comcast 2012 Annual Report on Form 10-K
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