Comcast 2013 Annual Report Download - page 79

Table of Contents
resolved, either individually or in the aggregate, differences between our estimated amounts and the actual amounts are not
expected to have a material adverse effect on our consolidated financial position but could possibly be material to our consolidated
results of operations or cash flow for any one period. As of December 31, 2013, our uncertain tax positions and related accrued
interest were $1.7 billion and $780 million, respectively.
Item 7A: Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk Management
We maintain a mix of fixed-rate and variable-
rate debt and we are exposed to the market risk of adverse changes in interest rates.
In order to manage the cost and volatility relating to the interest cost of our outstanding debt, we enter into various interest rate risk
management derivative transactions in accordance with our policies.
We monitor our exposure to the risk of adverse changes in interest rates through the use of techniques that include market value
and sensitivity analyses. We do not engage in any speculative or leveraged derivative transactions.
Our interest rate derivative financial instruments, which may include swaps, rate locks, caps and collars, represent an integral part
of our interest rate risk management program. Our interest rate derivative financial instruments reduced the portion of Comcast’
s
total consolidated debt at fixed rates as of December 31, 2013 to 83.5% from 91.5%. NBCUniversal’
s interest rate derivative
financial instruments reduced the portion of NBCUniversal’
s total consolidated debt at fixed rates as of December 31, 2013 to
93.2% from 99.9%.
In 2013, 2012 and 2011, the effect of our interest rate derivative financial instruments was to decrease Comcast’
s consolidated
interest expense by $98 million, $106 million and $136 million, respectively. The effect of NBCUniversal’
s interest rate derivative
financial instruments was not material to NBCUniversal’
s consolidated financial statements for all periods presented. Interest rate
derivative financial instruments may have a significant effect on Comcast’s interest expense in the future.
The table below summarizes the fair values and contract terms of financial instruments subject to interest rate risk maintained by us
as of December 31, 2013.
The estimated fair value of our interest rate swaps in the table above includes $21 million related to NBCUniversal.
(in millions)
2014
2015
2016
2017
2018
Thereafter
Total
Estimated
Fair Value as of
December 31,
2013
Debt
Fixed rate
$
1,930
$
3,370
$
2,801
$
2,557
$
3,444
$
29,695
$
43,797
$
47,773
Average interest rate
3.8
%
5.9
%
4.6
%
7.0
%
4.3
%
5.5
%
5.4
%
Variable rate
$
1,350
$
50
$
700
$
—
$
1,950
$
—
$
4,050
$
4,050
Average interest rate
0.7
%
3.2
%
3.1
%
0.0
%
4.9
%
0.0
%
3.2
%
Interest Rate Instruments
Fixed to variable swaps
$
1,100
$
150
$
800
$
200
$
1,600
$
—
$
3,850
$
140
Average pay rate
0.7
%
1.9
%
2.9
%
6.0
%
4.6
%
0.0
%
3.1
%
Average receive rate
4.4
%
3.7
%
4.8
%
6.3
%
5.8
%
0.0
%
5.1
%
Comcast 2013 Annual Report on Form 10
-
K
74