Comcast 2013 Annual Report Download - page 106

Table of Contents
Comcast Corporation
base rate plus a borrowing margin that is determined based on our credit rating. Following the amendments to this credit
agreement, NBCUniversal’
s commercial paper program was terminated. As of December 31, 2013, $1.25 billion was outstanding
under this credit facility.
Debt Instruments
Revolving Credit Facilities
As of December 31, 2013, Comcast and Comcast Cable Communications, LLC had a $6.25 billion revolving credit facility due June
2017 with a syndicate of banks. The interest rate on this facility consists of a base rate plus a borrowing margin that is determined
based on our credit rating. As of December 31, 2013, the borrowing margin for LIBOR-
based borrowings was 1.00%. This revolving
credit facility requires that we maintain certain financial ratios based on our debt and our operating income before depreciation and
amortization, as defined in the credit facility. We were in compliance with all financial covenants for all periods presented.
As of December 31, 2013, amounts available under our consolidated credit facilities, net of amounts outstanding under our
commercial paper program and outstanding letters of credit, totaled $4.7 billion, which included $100 million available under
NBCUniversal Enterprise’s credit facility.
Commercial Paper Program
Our commercial paper program provides a lower cost source of borrowing to fund our short-
term working capital requirements and
is supported by our $6.25 billion revolving credit facility due June 2017. In September 2013, we increased the borrowing capacity of
our commercial paper program from $2.25 billion to $6.25 billion.
Letters of Credit
As of December 31, 2013, we and certain of our subsidiaries had unused irrevocable standby letters of credit totaling $515 million
to cover potential fundings under various agreements.
Note 10: Fair Value Measurements
The accounting guidance related to financial assets and financial liabilities (“financial instruments”)
establishes a hierarchy that
prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach,
income approach and cost approach). The levels of the hierarchy are described below.
•
Level 1: Consists of financial instruments whose values are based on quoted market prices for identical
financial instruments in an active market.
•
Level 2: Consists of financial instruments that are valued using models or other valuation methodologies.
These models use inputs that are observable either directly or indirectly. Level 2 inputs include (i) quoted
prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or
liabilities in markets that are not active, (iii) pricing models whose inputs are observable for substantially
the full term of the financial instrument and (iv) pricing models whose inputs are derived primarily from or
corroborated by observable market data through correlation or other means for substantially the full term
of the financial instrument.
•
Level 3: Consists of financial instruments whose values are determined using pricing models that use
significant inputs that are primarily unobservable, discounted cash flow methodologies or similar
techniques, as well as instruments for which the determination of fair value requires significant
management judgment or estimation.
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Comcast 2013 Annual Report on Form 10
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