Comcast 2012 Annual Report Download - page 84

Table of Contents
Notes to Consolidated Financial Statements
Note 1: Business and Basis of Presentation
We are a Pennsylvania corporation and were incorporated in December 2001. Through our predecessors, we have developed,
managed and operated cable systems since 1963, and in 2011, we closed the NBCUniversal transaction in which we acquired
control of the businesses of NBC Universal, Inc. (now named NBCUniversal Media, LLC (“NBCUniversal”)).
We present our operations as the following five reportable business segments: Cable Communications, Cable Networks, Broadcast
Television, Filmed Entertainment and Theme Parks. See Note 19 for additional information on our reportable business segments.
Our Cable Communications segment is primarily involved in the management and operation of cable systems serving residential and
business customers in the United States. As of December 31, 2012, we served 22.0 million video customers, 19.4 million high-
speed
Internet customers and 10.0 million voice customers.
Our Cable Networks segment consists primarily of our national cable entertainment networks (USA Network, Syfy, E!, Bravo,
Oxygen, Style, G4, Chiller, Cloo and Universal HD); our national cable news and information networks (CNBC, MSNBC and CNBC
World); our national cable sports networks (Golf Channel and NBC Sports Network); our regional sports and news networks; our
international cable networks (including CNBC Europe, CNBC Asia and our Universal Networks International portfolio of networks);
our cable television production studio; and our related digital media properties, which are primarily brand-
aligned and other websites.
Our Broadcast Television segment consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo
owned local television stations, our broadcast television production operations, and our related digital media properties, which are
primarily brand-aligned websites.
Our Filmed Entertainment segment produces, acquires, markets and distributes filmed entertainment worldwide. Our films are
produced primarily under the Universal Pictures, Focus Features and Illumination names. We also develop, produce and license live
stage plays.
Our Theme Parks segment consists primarily of our Universal theme parks in Orlando and Hollywood. We also receive fees from
third parties that own and operate Universal Studios Japan and Universal Studios Singapore for intellectual property licenses and
other services.
Our other business interests primarily include Comcast-
Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center
arena in Philadelphia and operates arena management-related businesses.
Basis of Presentation
The accompanying consolidated financial statements include all entities in which we have a controlling voting interest (“subsidiaries”
)
and variable interest entities (“VIEs”)
required to be consolidated in accordance with generally accepted accounting principles in the
United States (“GAAP”).
We translate assets and liabilities of our foreign subsidiaries where the functional currency is the local currency, primarily the euro
and the British pound, into U.S. dollars at the exchange rate in effect at the balance sheet date. The related translation adjustments
are recorded as a component of accumulated other comprehensive income (loss). We translate revenue and expenses using
average monthly exchange rates, and the related foreign currency transaction gains and losses are included in our consolidated
statement of income.
Reclassifications
Reclassifications have been made to the prior year’
s consolidated financial statements to conform to classifications used in the
current year. In addition, costs and expenses for 2011 and 2010 in our consolidated
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Comcast 2012 Annual Report on Form 10-
K