Quarterly Report



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2017
OR
c
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Transition Period from                      to                       
 
COMCASTLOGOA01.JPG
 
Commission File Number
Exact Name of Registrant; State of
Incorporation; Address and Telephone
Number of Principal Executive Offices
I.R.S. Employer Identification No.
001-32871
COMCAST CORPORATION
27-0000798
 
PENNSYLVANIA
One Comcast Center
Philadelphia, PA 19103-2838
(215) 286-1700
 
 
 
 
001-36438
NBCUNIVERSAL MEDIA, LLC
14-1682529
 
DELAWARE
30 Rockefeller Plaza
New York, NY 10112-0015
(212) 664-4444
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 
Comcast Corporation
 
Yes
x
 
No
c
 
 
NBCUniversal Media, LLC
 
Yes
x
 
No
c
 
 
 
 
 
 
 
 
 
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such period that the registrant was required to submit and post such files).
 
Comcast Corporation
 
Yes
x
 
No
c
 
 
NBCUniversal Media, LLC
 
Yes
x
 
No
c
 
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Comcast Corporation
Large accelerated filer
x
Accelerated filer
c
Non-accelerated filer
c
Smaller reporting company
c
Emerging growth company
c
NBCUniversal Media, LLC
Large accelerated filer
c
Accelerated filer
c
Non-accelerated filer
x
Smaller reporting company
c
Emerging growth company
c
If an emerging growth company, indicate by check mark whether the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Comcast Corporation
c
NBCUniversal Media, LLC
c
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).
 
Comcast Corporation
 
Yes
c
 
No
x
 
 
NBCUniversal Media, LLC
 
Yes
c
 
No
x
 
Indicate the number of shares outstanding of each of the registrant’s classes of stock, as of the latest practical date:
As of March 31, 2017 , there were 4,733,512,494 shares of Comcast Corporation Class A common stock and 9,444,375 shares of Comcast Corporation Class B common stock outstanding.
Not applicable for NBCUniversal Media, LLC.
NBCUniversal Media, LLC meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format.
 



TABLE OF CONTENTS
   
   
Page
Number
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.
 
Explanatory Note
This Quarterly Report on Form 10-Q is a combined report being filed separately by Comcast Corporation (“Comcast”) and NBCUniversal Media, LLC (“NBCUniversal”). Comcast owns all of the common equity interests in NBCUniversal, and NBCUniversal meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing its information within this Form 10-Q with the reduced disclosure format. Each of Comcast and NBCUniversal is filing on its own behalf the information contained in this report that relates to itself, and neither company makes any representation as to information relating to the other company. Where information or an explanation is provided that is substantially the same for each company, such information or explanation has been combined in this report. Where information or an explanation is not substantially the same for each company, separate information and explanation has been provided. In addition, separate condensed consolidated financial statements for each company, along with notes to the condensed consolidated financial statements, are included in this report. Unless indicated otherwise, throughout this Quarterly Report on Form 10-Q, we refer to Comcast and its consolidated subsidiaries, including NBCUniversal and its consolidated subsidiaries, as “we,” “us” and “our;” Comcast Cable Communications, LLC and its consolidated subsidiaries as “Comcast Cable;” Comcast Holdings Corporation as “Comcast Holdings;” and NBCUniversal, LLC as “NBCUniversal Holdings.”
This Quarterly Report on Form 10-Q is for the three months ended March 31, 2017 . This Quarterly Report modifies and supersedes documents filed before it. The Securities and Exchange Commission (“SEC”) allows us to “incorporate by reference” information that we file with it, which means that we can disclose important information to you by referring you directly to those documents. Information incorporated by reference is considered to be part of this Quarterly Report. In addition, information that we file with the SEC in the future will automatically update and supersede information contained in this Quarterly Report.
You should carefully review the information contained in this Quarterly Report and particularly consider any risk factors set forth in this Quarterly Report and in other reports or documents that we file from time to time with the SEC. In this Quarterly Report, we state our beliefs of future events and of our future financial performance. In some cases, you can identify these so-called



“forward-looking statements” by words such as “may,” “will,” “should,” “expects,” “believes,” “estimates,” “potential,” or “continue,” or the negative of those words, and other comparable words. You should be aware that these statements are only our predictions. In evaluating these statements, you should specifically consider various factors, including the risks outlined below and in other reports we file with the SEC. Actual events or our actual results may differ materially from any of our forward-looking statements. We undertake no obligation to update any forward-looking statements.
Our businesses may be affected by, among other things, the following:
our businesses currently face a wide range of competition, and our businesses and results of operations could be adversely affected if we do not compete effectively
changes in consumer behavior driven by new technologies and distribution platforms for viewing content may adversely affect our businesses and challenge existing business models
a decline in advertisers’ expenditures or changes in advertising markets could negatively impact our businesses
our businesses depend on keeping pace with technological developments
we are subject to regulation by federal, state, local and foreign authorities, which may impose additional costs and restrictions on our businesses
changes to existing statutes, rules, regulations, or interpretations thereof, or adoption of new ones, could have an adverse effect on our businesses
programming expenses for our video services are increasing, which could adversely affect our Cable Communications segment’s video business
NBCUniversal’s success depends on consumer acceptance of its content, and its businesses may be adversely affected if its content fails to achieve sufficient consumer acceptance or the costs to create or acquire content increase
the loss of NBCUniversal’s programming distribution agreements, or the renewal of these agreements on less favorable terms, could adversely affect its businesses
we rely on network and information systems and other technologies, as well as key properties, and a disruption, cyber attack, failure or destruction of such networks, systems, technologies or properties may disrupt our businesses
we may be unable to obtain necessary hardware, software and operational support
weak economic conditions may have a negative impact on our businesses
our businesses depend on using and protecting certain intellectual property rights and on not infringing the intellectual property rights of others
acquisitions and other strategic initiatives, including the launch of our wireless phone service, present many risks, and we may not realize the financial and strategic goals that we had contemplated
labor disputes, whether involving employees or sports organizations, may disrupt our operations and adversely affect our businesses
the loss of key management personnel or popular on-air and creative talent could have an adverse effect on our businesses
we face risks relating to doing business internationally that could adversely affect our businesses
our Class B common stock has substantial voting rights and separate approval rights over several potentially material transactions, and our Chairman and CEO has considerable influence over our company through his beneficial ownership of our Class B common stock


Table of Contents

PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
Comcast Corporation
Condensed Consolidated Balance Sheet
(Unaudited)
(in millions, except share data)
March 31,
2017
December 31,
2016
Assets
 
 
Current Assets:
 
 
Cash and cash equivalents
$
4,022

$
3,301

Receivables, net
7,525

7,955

Programming rights
1,479

1,250

Other current assets
2,219

3,855

Total current assets
15,245

16,361

Film and television costs
6,968

7,252

Investments
5,938

5,247

Property and equipment, net of accumulated depreciation of $49,991 and $49,694
36,626

36,253

Franchise rights
59,364

59,364

Goodwill
36,592

35,980

Other intangible assets, net of accumulated amortization of $11,442 and $11,013
19,014

17,274

Other noncurrent assets, net
2,732

2,769

Total assets
$
182,479

$
180,500

Liabilities and Equity
 
 
Current Liabilities:
 
 
Accounts payable and accrued expenses related to trade creditors
$
6,658

$
6,915

Accrued participations and residuals
1,811

1,726

Deferred revenue
1,234

1,132

Accrued expenses and other current liabilities
5,862

6,282

Current portion of long-term debt
3,509

5,480

Total current liabilities
19,074

21,535

Long-term debt, less current portion
58,276

55,566

Deferred income taxes
35,348

34,854

Other noncurrent liabilities
10,677

10,925

Commitments and contingencies (Note 10)




Redeemable noncontrolling interests and redeemable subsidiary preferred stock
1,456

1,446

Equity:
 
 
Preferred stock—authorized, 20,000,000 shares; issued, zero


Class A common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 5,606,303,522 and 5,614,950,039; outstanding, 4,733,512,494 and 4,742,159,011
56

56

Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375


Additional paid-in capital
38,115

38,230

Retained earnings
24,063

23,076

Treasury stock, 872,791,028 Class A common shares
(7,517
)
(7,517
)
Accumulated other comprehensive income (loss)
342

98

Total Comcast Corporation shareholders’ equity
55,059

53,943

Noncontrolling interests
2,589

2,231

Total equity
57,648

56,174

Total liabilities and equity
$
182,479

$
180,500

See accompanying notes to condensed consolidated financial statements.

1


Comcast Corporation

Condensed Consolidated Statement of Income
(Unaudited)
 
Three Months Ended
March 31
(in millions, except per share data)
2017
2016
Revenue
$
20,463

$
18,790

Costs and Expenses:


Programming and production
6,074

5,431

Other operating and administrative
5,827

5,526

Advertising, marketing and promotion
1,530

1,466

Depreciation
1,915

1,785

Amortization
587

493

 
15,933

14,701

Operating income
4,530

4,089

Other Income (Expense):
 
 
Interest expense
(755
)
(703
)
Investment income (loss), net
59

30

Equity in net income (losses) of investees, net
36

(11
)
Other income (expense), net
35

130

 
(625
)
(554
)
Income before income taxes
3,905

3,535

Income tax expense
(1,258
)
(1,311
)
Net income
2,647

2,224

Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock
(81
)
(90
)
Net income attributable to Comcast Corporation
$
2,566

$
2,134

Basic earnings per common share attributable to Comcast Corporation shareholders
$
0.54

$
0.44

Diluted earnings per common share attributable to Comcast Corporation shareholders
$
0.53

$
0.43

Dividends declared per common share
$
0.1575

$
0.1375

See accompanying notes to condensed consolidated financial statements.

2


Comcast Corporation

Condensed Consolidated Statement of Comprehensive Income
(Unaudited)  
 
Three Months Ended
March 31
(in millions)
2017
2016
Net income
$
2,647

$
2,224

Unrealized gains (losses) on marketable securities, net of deferred taxes of $(61) and $(1)
104

2

Deferred gains (losses) on cash flow hedges, net of deferred taxes of $(4) and $18
7

(31
)
Amounts reclassified to net income:
 
 
Realized (gains) losses on marketable securities, net of deferred taxes of $— and $1

(1
)
Realized (gains) losses on cash flow hedges, net of deferred taxes of $— and $(10)

17

Employee benefit obligations, net of deferred taxes of $(37) and $(2)
63

2

Currency translation adjustments, net of deferred taxes of $(41) and $(58)
157

238

Comprehensive income
2,978

2,451

Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock
(81
)
(90
)
Other comprehensive (income) loss attributable to noncontrolling interests
(87
)
(137
)
Comprehensive income attributable to Comcast Corporation
$
2,810

$
2,224

See accompanying notes to condensed consolidated financial statements.

3


Comcast Corporation

Condensed Consolidated Statement of Cash Flows
(Unaudited)  
 
Three Months Ended
March 31
(in millions)
2017
2016
Net cash provided by operating activities
$
5,656

$
5,399

Investing Activities
 
 
Capital expenditures
(2,078
)
(1,885
)
Cash paid for intangible assets
(416
)
(378
)
Acquisitions and construction of real estate properties
(130
)
(140
)
Acquisitions, net of cash acquired
(216
)
(24
)
Proceeds from sales of investments
51

110

Purchases of investments
(1,062
)
(448
)
Other
57

56

Net cash provided by (used in) investing activities
(3,794
)
(2,709
)
Financing Activities
 
 
Proceeds from (repayments of) short-term borrowings, net
(1,893
)
(538
)
Proceeds from borrowings
3,500

3,323

Repurchases and repayments of debt
(1,059
)
(48
)
Repurchases of common stock under repurchase program and employee plans
(996
)
(1,427
)
Dividends paid
(657
)
(611
)
Issuances of common stock

12

Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock
(72
)
(77
)
Other
36

9

Net cash provided by (used in) financing activities
(1,141
)
643

Increase (decrease) in cash and cash equivalents
721

3,333

Cash and cash equivalents, beginning of period
3,301

2,295

Cash and cash equivalents, end of period
$
4,022

$
5,628

See accompanying notes to condensed consolidated financial statements.

4


Comcast Corporation

Condensed Consolidated Statement of Changes in Equity
(Unaudited)  
 
Redeemable
Noncontrolling
Interests and
Redeemable
Subsidiary
Preferred Stock
 
Common Stock
Additional
Paid-In
Capital
Retained
Earnings
Treasury
Stock at
Cost
Accumulated
Other
Comprehensive
Income (Loss)
Non-
controlling
Interests
Total
Equity
(in millions)
A
B
Balance, December 31, 2015
$
1,221

$
57

$

$
38,490

$
21,413

$
(7,517
)
$
(174
)
$
1,709

$
53,978

Stock compensation plans
 
 
 
228



 
 
 
228

Repurchases of common stock under repurchase program and employee plans
 
 
 
(310
)
(1,127
)
 
 
 
(1,437
)
Employee stock purchase plans
 
 
 
33

 
 
 
 
33

Dividends declared
 
 
 
 
(670
)
 
 
 
(670
)
Other comprehensive income (loss)
 
 
 
 
 
 
90

137

227

Contributions from (distributions to) noncontrolling interests, net
(5
)
 
 
 
 
 
 
(36
)
(36
)
Other
(10
)
 
 
(5
)
 
 
 


(5
)
Net income (loss)
30

 
 
 
2,134

 
 
60

2,194

Balance, March 31, 2016
$
1,236

$
57

$

$
38,436

$
21,750

$
(7,517
)
$
(84
)
$
1,870

$
54,512

Balance, December 31, 2016
$
1,446

$
56

$

$
38,230

$
23,076

$
(7,517
)
$
98

$
2,231

$
56,174

Stock compensation plans
 
 
 
114

 
 
 
 
114

Repurchases of common stock under repurchase program and employee plans
 


 
(178
)
(828
)
 
 
 
(1,006
)
Employee stock purchase plans
 
 
 
39

 
 
 
 
39

Dividends declared
 
 
 
 
(751
)
 
 
 
(751
)
Other comprehensive income (loss)
 
 
 
 
 
 
244

87

331

Contributions from (distributions to) noncontrolling interests, net
(8
)
 
 
 
 
 
 
(34
)
(34
)
Other
(11
)
 
 
(90
)
 
 
 
253

163

Net income (loss)
29

 
 
 
2,566

 
 
52

2,618

Balance, March 31, 2017
$
1,456

$
56

$

$
38,115

$
24,063

$
(7,517
)
$
342

$
2,589

$
57,648

See accompanying notes to condensed consolidated financial statements.

5


Comcast Corporation

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1: Condensed Consolidated Financial Statements
Basis of Presentation
We have prepared these unaudited condensed consolidated financial statements based on SEC rules that permit reduced disclosure for interim periods. These financial statements include all adjustments that are necessary for a fair presentation of our consolidated results of operations, financial condition and cash flows for the periods shown, including normal, recurring accruals and other items. The consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year.
The year-end condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”). For a more complete discussion of our accounting policies and certain other information, refer to our consolidated financial statements included in our 2016 Annual Report on Form 10-K.
Stock Split
On January 24, 2017, our Board of Directors approved a two -for-one stock split in the form of a 100% stock dividend that was distributed on February 17, 2017 to shareholders of record as of February 8, 2017. The stock split was in the form of one additional share for every share held and was payable in shares of Class A common stock on the existing Class A common stock and Class B common stock. All share-based data, including the number of shares outstanding and per share amounts, have been adjusted to reflect the stock split for all periods presented.
Reclassifications
Reclassifications have been made to our condensed consolidated financial statements for the prior year period to conform to classifications used in 2017 .
Note 2: Recent Accounting Pronouncements
Revenue Recognition
In May 2014, the Financial Accounting Standards Board (“FASB”) updated the accounting guidance related to revenue recognition. The updated accounting guidance provides a single, contract-based revenue recognition model to help improve financial reporting by providing clearer guidance on when an entity should recognize revenue and by reducing the number of standards to which an entity has to refer. The updated accounting guidance is effective for us as of January 1, 2018.
We have reviewed a majority of our revenue arrangements and expect our review to be completed in the second quarter of 2017. As a result of our review, we do not expect any material impact on our financial position or results of operations. However, we do expect that the new standard will impact the timing of recognition for (1) our Cable Communications segment’s installation revenue and commission expenses, which upon adoption will be recognized as revenue and costs over a period of time instead of immediately, and (2) our Cable Networks, Broadcast Television and Filmed Entertainment segments’ content licensing revenue associated with renewals or extensions of existing program licensing agreements, which upon adoption will be recognized as revenue when the licensed content becomes available under the renewal or extension instead of when the agreement is renewed or extended. The updated guidance also requires additional disclosures regarding our revenue transactions.
The updated guidance provides companies with alternative methods of adoption and we are in the process of determining our method of adoption, which depends in part upon our completion of the evaluation of our remaining revenue arrangements.
Financial Assets and Financial Liabilities
In January 2016, the FASB updated the accounting guidance related to the recognition and measurement of financial assets and financial liabilities. The updated accounting guidance, among other things, requires that all nonconsolidated equity investments, except those accounted for under the equity method, be measured at fair value and that the changes in fair value be recognized in net income. The updated guidance is effective for us as of January 1, 2018. The updated accounting guidance requires a cumulative effect adjustment to beginning retained earnings in the year the guidance is adopted with certain exceptions. If we had adopted the provisions of the updated guidance as of January 1, 2017 for our equity investments classified as available-for-sale securities, net income attributable to Comcast Corporation would have increased by $104 million for the three months ended March 31, 2017 . We are currently in the process of determining the impact that the updated accounting guidance will have on our cost method investments.

6


Comcast Corporation

Leases
In February 2016, the FASB updated the accounting guidance related to leases. The updated accounting guidance requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. The asset and liability are initially measured based on the present value of committed lease payments. For a lessee, the recognition, measurement and presentation of expenses and cash flows arising from a lease do not significantly change from previous guidance. For a lessor, the accounting applied is also largely unchanged from previous guidance. The updated guidance is effective for us as of January 1, 2019 and early adoption is permitted. The updated accounting guidance must be adopted using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. We are currently in the process of determining the impact that the updated accounting guidance will have on our consolidated financial statements.
Share-Based Compensation
In March 2016, the FASB updated the accounting guidance that affects several aspects of the accounting for share-based compensation. The most significant change for us relates to the presentation of the income and withholding tax consequences of share-based compensation in our consolidated financial statements. Among the changes, the updated guidance requires that the excess income tax benefits or deficiencies that arise when the tax consequences of share-based compensation differ from amounts previously recognized in the statement of income be recognized as income tax benefit or expense in the statement of income rather than as additional paid-in capital in the balance sheet. The guidance also states that excess income tax benefits should not be presented separately from other income taxes in the statement of cash flows and, thus, should be classified as an operating activity rather than a financing activity as they were under the prior guidance. In addition, the updated guidance requires that, when an employer withholds shares upon exercise of options or the vesting of restricted stock for the purpose of meeting withholding tax requirements, the cash paid for withholding taxes be classified as a financing activity and we include these amounts in the caption “repurchases of common stock under repurchase program and employee plans” in our consolidated statement of cash flows. We previously recorded these amounts as operating activities.
We adopted the updated guidance as of January 1, 2017 and as required, we prospectively adopted the provisions that relate to the recognition of the excess income tax benefits or deficiencies in the statement of income. The excess tax benefits resulted in a decrease to income tax expense of $139 million and an increase to diluted earnings per common share attributable to Comcast Corporation shareholders of $0.03 for the three months ended March 31, 2017 . The prior year period in our consolidated statement of income was not adjusted as a result of these provisions.
In addition, we retrospectively adopted the provisions of this guidance related to changes to the statement of cash flows for all periods presented. This resulted in increases to net cash provided by operating activities and decreases to net cash provided by (used in) financing activities of $385 million and $289 million for the three months ended March 31, 2017 and 2016, respectively.
Note 3: Earnings Per Share
Computation of Diluted EPS
 
Three Months Ended March 31
 
2017
2016
(in millions, except per share amounts)
Net Income
Attributable to
Comcast
Corporation
Shares
Per Share
Amount
Net Income
Attributable to
Comcast
Corporation
Shares
Per Share
Amount
Basic EPS attributable to Comcast Corporation shareholders
$
2,566

4,747

$
0.54

$
2,134

4,868

$
0.44

Effect of dilutive securities:
 
 
 
 
 
 
Assumed exercise or issuance of shares relating to stock plans
 
85

 
 
57

 
Diluted EPS attributable to Comcast Corporation shareholders
$
2,566

4,832

$
0.53

$
2,134

4,925

$
0.43

Diluted earnings per common share attributable to Comcast Corporation shareholders (“diluted EPS”) considers the impact of potentially dilutive securities using the treasury stock method. Our potentially dilutive securities include potential common shares related to our stock options and our restricted share units (“RSUs”). The amount of potential common shares related to our share-based compensation plans that were excluded from diluted EPS because their effect would have been antidilutive was not material for the three months ended March 31, 2017 and 2016 .

7


Comcast Corporation

Note 4: Significant Transactions
FCC Spectrum Auction
On April 13, 2017, the Federal Communications Commission (“FCC”) announced the results of its spectrum auction. In the auction, NBCUniversal agreed to relinquish FCC licenses for spectrum in the New York, Philadelphia and Chicago designated market areas (“DMAs”) and will receive proceeds of $482 million . As of March 31, 2017, the book value of these licenses was $144 million and was recorded in other current assets in the condensed consolidated balance sheet. NBCUniversal will share broadcast signals for its NBC and Telemundo stations in these DMAs. In connection with the auction, we also agreed to acquire $1.7 billion of spectrum. We had previously made a deposit of $ 1.8 billion to participate in the auction, which was recorded in other intangible assets in the condensed consolidated balance sheet as of March 31, 2017.
Universal Studios Japan
On April 6, 2017, we acquired the remaining interests in Universal Studios Japan that we did not already own for approximately $2.3 billion . The acquisition was funded through cash on hand and borrowings under our commercial paper program. During the second quarter of 2017, we obtained commitments from lenders to refinance the Universal Studios Japan term loans, which we expect will, among other things, increase the borrowings, extend the maturity date and include a guarantee from us. We expect to use a portion of the Universal Studios Japan term loans proceeds to repay a portion of amounts outstanding under our commercial paper program.
DreamWorks Animation
On August 22, 2016, we acquired all of the outstanding stock of DreamWorks Animation for $3.8 billion . DreamWorks Animation s stockholders received $41 in cash for each share of DreamWorks Animation common stock. DreamWorks Animation creates animated feature films, television series and specials, live entertainment, and related consumer products. The results of operations for DreamWorks Animation are reported in our Filmed Entertainment segment following the acquisition date.
Preliminary Allocation of Purchase Price
The transaction was accounted for under the acquisition method of accounting and, accordingly, the assets and liabilities are to be recorded at their fair market values as of the acquisition date. We recorded the acquired assets and liabilities of DreamWorks Animation at their estimated fair values based on preliminary valuation analyses. In valuing acquired assets and liabilities, fair value estimates were primarily based on Level 3 inputs, including future expected cash flows, market rate assumptions and discount rates. The fair value of the assumed debt was primarily based on quoted market values. The fair value of the liability related to a tax receivable agreement that DreamWorks Animation had previously entered into with one of its former stockholders (the “tax receivable agreement”) was based on the contractual settlement provisions in the agreement. Further, we recorded the deferred income taxes based on our estimates of the tax basis of the acquired net assets and the valuation allowances based on the expected use of net operating loss carryforwards. The goodwill is not deductible for tax purposes. During the three months ended March 31, 2017, we updated the preliminary allocation of purchase price for DreamWorks Animation, which primarily resulted in increases to intangible assets, noncontrolling interests and goodwill and a decrease in deferred income tax assets. The changes did not have a material impact on our condensed consolidated financial statements. We may adjust these amounts further as valuations are finalized and we obtain information necessary to complete the analyses, but no later than one year from the acquisition date.
The table below presents the preliminary allocation of the purchase price to the assets and liabilities of DreamWorks Animation.
Preliminary Allocation of Purchase Price
(in millions)
  
Film and television costs
$
854

Intangible assets
362

Working capital
232

Debt
(381
)
Tax receivable agreement
(146
)
Deferred income taxes
293

Other noncurrent assets and liabilities
114

Identifiable net assets (liabilities) acquired
1,328

Noncontrolling interests
(337
)
Goodwill
2,782

Cash consideration transferred
$
3,773


8


Comcast Corporation

The tax receivable agreement was settled immediately following the acquisition and the payment was recorded as an operating activity in our condensed consolidated statement of cash flows in the third quarter of 2016. In addition, we repaid all of the assumed debt of DreamWorks Animation in the third quarter of 2016.
Revenue and net income attributable to the acquisition of DreamWorks Animation were not material for the three months ended March 31, 2017 .
Note 5: Film and Television Costs
(in millions)
March 31,
2017
December 31,
2016
Film Costs:
 
 
Released, less amortization
$
1,657

$
1,750

Completed, not released
469

50

In production and in development
982

1,310

 
3,108

3,110

Television Costs:
 
 
Released, less amortization
2,008

1,953

In production and in development
729

853

 
2,737

2,806

Programming rights, less amortization
2,602

2,586

 
8,447

8,502

Less: Current portion of programming rights
1,479

1,250

Film and television costs
$
6,968

$
7,252

Note 6: Investments
(in millions)
March 31,
2017
December 31,
2016
Fair Value Method:
 
 
Snap
$
662

$

Other
161

198


823

198

Equity Method:




Atairos
1,624

1,601

Hulu
171

225

Other
631

550


2,426

2,376

Cost Method:


AirTouch
1,602

1,599

BuzzFeed
400

400

Other
698

771

 
2,700

2,770

Total investments
5,949

5,344

Less: Current investments
11

97

Noncurrent investments
$
5,938

$
5,247

Investment Income (Loss), Net
 
Three Months Ended
March 31
(in millions)
2017
2016
Gains (losses) on sales and exchanges of investments, net
$
(1
)
$
2

Investment impairment losses
(4
)
(20
)
Interest and dividend income
33

29

Other, net
31

19

Investment income (loss), net
$
59

$
30



9


Comcast Corporation

Fair Value Method
Snap
In March 2017, we acquired an interest in Snap Inc. for $500 million as part of its initial public offering , which we have classified as available for sale. Snap is a camera company whose primary product is Snapchat, a camera app that was created to help people communicate through short videos and images.
Equity Method
Atairos
For the three months ended March 31, 2017 , we made cash capital contributions totaling $457 million to Atairos Group, Inc., which included amounts accrued as of December 31, 2016. Atairos follows investment company accounting and records its investments at their fair values each reporting period with the net gains or losses reflected in its statement of income. We recognize our share of these gains and losses in equity in net income (losses) of investees, net. For the three months ended March 31, 2017 , we recognized our share of Atairos income of $57 million . For the three months ended March 31, 2016, we recognized our share of Atairos losses of $15 million .
The Weather Channel
In January 2016, following a legal restructuring at The Weather Channel, we and the other investors sold the entity holding The Weather Channel’s product and technology businesses to IBM. Following the close of the transaction, we continue to hold an investment in The Weather Channel cable network through a new holding company. As a result of the sale of our investment, we recognized a pretax gain of $108 million in other income (expense), net for the three months ended March 31, 2016.
Cost Method
AirTouch
We hold two series of preferred stock of Verizon Americas, Inc., formerly known as AirTouch Communications, Inc. (“AirTouch”), a subsidiary of Verizon Communications Inc., which are redeemable in April 2020. As of March 31, 2017 , the estimated fair value of the AirTouch preferred stock and the estimated fair value of the associated liability related to the redeemable subsidiary preferred shares issued by one of our consolidated subsidiaries were each $1.8 billion . The estimated fair values are based on Level 2 inputs that use 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.
Note 7: Long-Term Debt
As of March 31, 2017 , our debt had a carrying value of $61.8 billion and an estimated fair value of $66.7 billion . The estimated fair value of our publicly traded debt was primarily based on Level 1 inputs that use quoted market values for the debt. The estimated fair value of debt for which there are no quoted market prices was based on Level 2 inputs that use interest rates available to us for debt with similar terms and remaining maturities.
Debt Borrowings and Repayments
In March 2017, we issued $1.005 billion aggregate principal amount of 4.45% senior notes due 2047. In January 2017, we issued $1.25 billion aggregate principal amount of 3.00% senior notes due 2024 and $1.25 billion aggregate principal amount of 3.30% senior notes due 2027.
In January 2017, we repaid at maturity $1.0 billion aggregate principal amount of 6.50% senior notes due 2017.
Revolving Credit Facilities
As of March 31, 2017 , amounts available under our consolidated revolving credit facilities, net of amounts outstanding under our commercial paper programs and outstanding letters of credit, totaled $7.4 billion , which included $585 million available under NBCUniversal Enterprise’s revolving credit facility.
Commercial Paper Programs
As of March 31, 2017 , NBCUniversal Enterprise had $915 million face amount of commercial paper outstanding. Comcast had no commercial paper outstanding.
Note 8: Share-Based Compensation
Our share-based compensation plans consist primarily of awards of RSUs and stock options to certain employees and directors as part of our approach to long-term incentive compensation. Additionally, through our employee stock purchase plans, employees are able to purchase shares of our common stock at a discount through payroll deductions.

10


Comcast Corporation

In March 2017, we granted 10.6 million RSUs and 39.1 million stock options related to our annual management awards. The weighted-average fair values associated with these grants were $37.42 per RSU and $7.01 per stock option.
Recognized Share-Based Compensation Expense
 
Three Months Ended
March 31
(in millions)
2017
2016
Restricted share units
$
74

$
70

Stock options
40

37

Employee stock purchase plans
10

8

Total
$
124

$
115

As of March 31, 2017 , we had unrecognized pretax compensation expense of $1.0 billion and $569 million related to nonvested RSUs and nonvested stock options, respectively.
Note 9: Supplemental Financial Information
Receivables
(in millions)
March 31,
2017
December 31,
2016
Receivables, gross
$
8,111

$
8,622

Less: Allowance for returns and customer incentives
347

417

Less: Allowance for doubtful accounts
239

250

Receivables, net
$
7,525

$
7,955

Accumulated Other Comprehensive Income (Loss)
(in millions)
March 31,
2017
March 31,
2016
Unrealized gains (losses) on marketable securities
$
104

$
2

Deferred gains (losses) on cash flow hedges
(7
)
(60
)
Unrecognized gains (losses) on employee benefit obligations
282

8

Cumulative translation adjustments
(37
)
(34
)
Accumulated other comprehensive income (loss), net of deferred taxes
$
342

$
(84
)
Net Cash Provided by Operating Activities
 
Three Months Ended
March 31
(in millions)
2017
2016
Net income
$
2,647

$
2,224

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
2,502

2,278

Share-based compensation
173

153

Noncash interest expense (income), net
58

55

Equity in net (income) losses of investees, net
(36
)
11

Cash received from investees
17

16

Net (gain) loss on investment activity and other
(53
)
(126
)
Deferred income taxes
265

217

Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
 
 
Current and noncurrent receivables, net
465

562

Film and television costs, net
46

(80
)
Accounts payable and accrued expenses related to trade creditors
(190
)
12

Other operating assets and liabilities
(238
)
77

Net cash provided by operating activities
$
5,656

$
5,399


11


Comcast Corporation

Cash Payments for Interest and Income Taxes  
 
Three Months Ended
March 31
(in millions)
2017
2016
Interest
$
895

$
723

Income taxes
$
132

$
190

Noncash Investing and Financing Activities
During the three months ended March 31, 2017 :
we acquired $1.2 billion of property and equipment and intangible assets that were accrued but unpaid
we recorded a liability of $747 million for a quarterly cash dividend of $0.1575 per common share to be paid in April 2017
Note 10: Commitments and Contingencies
Redeemable Subsidiary Preferred Stock
As of March 31, 2017 , the fair value of the NBCUniversal Enterprise redeemable subsidiary preferred stock was $763 million . The estimated fair value is based on Level 2 inputs that use 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.
Contingencies
We are a defendant in a lawsuit filed in December 2011 by Sprint Communications Company L.P. (“Sprint”) in the United States District Court for the District of Kansas. Sprint’s initial complaint alleged that Comcast Digital Voice and XFINITY Voice infringe twelve Sprint patents covering various aspects of a telecommunications system. In March 2015, Sprint withdrew its allegations of infringement for two of the patents. In December 2016, the Court granted summary judgment for Comcast with respect to non-infringement of one of the patents and granted summary judgment for Sprint of one of the patents as to infringement, but not as to the patent’s validity, with respect to some but not all of Comcast’s accused telecommunications systems. In January 2017, the Court entered judgment in favor of Comcast on Sprint’s claims for infringement of two of the patents. In March 2017, Sprint indicated that it would not proceed to trial on three of the patents. Trial with respect to the four remaining patents, including the patent for which the Court granted partial summary judgment to Sprint, is set to begin in late October 2017. Sprint seeks approximately $950 million in damages, plus pre-judgment interest. Sprint has further indicated that it may seek to add an allegation that Comcast willfully infringed Sprint’s patents and should be subject to increased damages, which could as much as triple the amount of any damages awarded.
We believe the claims in the Sprint lawsuit are without merit and are defending the action vigorously. We cannot predict the outcome of the Sprint lawsuit, estimate a range of possible loss or determine how the final resolution of the action would affect our results of operations or cash flows for any one period or our consolidated financial position. In addition, as any action nears a trial, there is an increased possibility that the action may be settled by the parties. Nevertheless, we do not expect the final disposition of the Sprint lawsuit to have a material adverse effect on our consolidated financial position, but it could be material to our consolidated results of operations or cash flows for any one period.
We also are a defendant in several unrelated lawsuits claiming infringement of various patents relating to various aspects of our businesses. In certain of these cases, other industry participants are also defendants, and also in certain of these cases, we expect that any potential liability would be in part or in whole the responsibility of our equipment and technology vendors under applicable contractual indemnification provisions, including the Sprint lawsuit above. In addition, we are subject to other legal proceedings and claims that arise in the ordinary course of our business. While the amount of ultimate liability with respect to such actions is not expected to materially affect our results of operations, cash flows or financial position, any litigation resulting from any such legal proceedings or claims could be time-consuming and injure our reputation.


12


Comcast Corporation

Note 11: Financial Data by Business Segment
We present our operations in five reportable business segments:
Cable Communications: Consists of the operations of Comcast Cable, which is one of the nation’s largest providers of video, high-speed Internet, voice, and security and automation services to residential customers under the XFINITY brand ; we also provide these and other services to business customers and sell advertising.
Cable Networks: Consists primarily of our national cable networks, our regional sports and news networks, our international cable networks, and our cable television studio production operations.
Broadcast Television: Consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo owned local broadcast television stations, the NBC Universo national cable network, and our broadcast television studio production operations.
Filmed Entertainment: Consists primarily of the operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment worldwide; our films are also produced under the Illumination, Focus Features and DreamWorks Animation names.
Theme Parks: Consists primarily of our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan.
We use Adjusted EBITDA (formerly operating income before depreciation and amortization) to evaluate the profitability of our operating segments and the components of net income attributable to Comcast Corporation below Adjusted EBITDA are not separately evaluated by our management. Our financial data by business segment is presented in the tables below.
 
Three Months Ended March 31, 2017
(in millions)
Revenue (e)
Adjusted EBITDA (f)
Depreciation and Amortization
Operating Income (Loss)
Capital
Expenditures
Cash Paid for Intangible Assets
Cable Communications (a)
$
12,912

$
5,198

$
1,980

$
3,218

$
1,781

$
352

NBCUniversal
 
 
 
 
 

Cable Networks
2,641

1,116

214

902

2

3

Broadcast Television
2,208

322

32

290

29

3

Filmed Entertainment
1,981

368

21

347

10

5

Theme Parks
1,118

397

142

255

229

13

Headquarters and Other (b)
8

(185
)
99

(284
)
15

31

Eliminations (c)
(88
)
(1
)

(1
)


NBCUniversal
7,868

2,017

508

1,509

285

55

Corporate and Other (d)
208

(194
)
14

(208
)
12

9

Eliminations (c)
(525
)
11


11



Comcast Consolidated
$
20,463

$
7,032

$
2,502

$
4,530

$
2,078

$
416

 
Three Months Ended March 31, 2016
(in millions)
Revenue (e)
Adjusted EBITDA (f)
Depreciation and Amortization
Operating Income (Loss)
Capital
Expenditures
Cash Paid for Intangible Assets
Cable Communications (a)
$
12,204

$
4,889

$
1,843

$
3,046

$
1,576

$
324

NBCUniversal
 
 
 
 
 

Cable Networks
2,453

956

190

766

1

1

Broadcast Television
2,084

284

32

252

19

3

Filmed Entertainment
1,383

167

8

159

3

3

Theme Parks
1,026

375

98

277

200

9

Headquarters and Other (b)
3

(160
)
86

(246
)
72

36

Eliminations (c)
(88
)





NBCUniversal
6,861

1,622

414

1,208

295

52

Corporate and Other (d)
199

(154
)
21

(175
)
14

2

Eliminations (c)
(474
)
10


10



Comcast Consolidated
$
18,790

$
6,367

$
2,278

$
4,089

$
1,885

$
378


13


Comcast Corporation

(a)
For the three months ended March 31, 2017 and 2016 , Cable Communications segment revenue was derived from the following sources:
 
Three Months Ended
March 31
  
2017
2016
Residential:
 
 
Video
44.7
%
45.4
%
High-speed Internet
27.9
%
26.8
%
Voice
6.7
%
7.3
%
Business services
11.5
%
10.7
%
Advertising
4.0
%
4.5
%
Other
5.2
%
5.3
%
Total
100.0
%
100.0
%
Subscription revenue received from customers who purchase bundled services at a discounted rate is allocated proportionally to each cable service based on the individual service’s price on a stand-alone basis.
For the three months ended March 31, 2017 and 2016 , 2.8% and 2.9% , respectively, of Cable Communications segment revenue was derived from franchise and other regulatory fees.
(b)
NBCUniversal Headquarters and Other activities include costs associated with overhead, allocations, personnel costs and headquarter initiatives.
(c)
Included in Eliminations are transactions that our segments enter into with one another. The most common types of transactions are the following:
our Cable Networks segment generates revenue by selling programming to our Cable Communications segment, which represents a substantial majority of the revenue elimination amount
our Broadcast Television segment generates revenue from the fees received under retransmission consent agreements with our Cable Communications segment
our Cable Communications segment generates revenue by selling advertising and by selling the use of satellite feeds to our Cable Networks segment
our Filmed Entertainment and Broadcast Television segments generate revenue from the licensing of film and television content to our Cable Networks segment
(d)
Corporate and Other activities include costs associated with overhead and personnel, the costs of corporate initiatives and branding, including our new wireless phone service, and the operations of Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania and operates arena management-related businesses.
(e)
No single customer accounted for a significant amount of revenue in any period.
(f)
We use Adjusted EBITDA as the measure of profit or loss for our operating segments. Adjusted EBITDA is defined as net income attributable to Comcast Corporation before net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock, income tax expense, other income (expense) items, net, and depreciation and amortization, and excluding impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets, if any. Other income (expense) items, net include interest expense, investment income (loss), equity in net income (losses) of investees, and other income (expense), net (as stated in our condensed consolidated statement of income). This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. Additionally, it is unaffected by our capital and tax structures and by our investment activities. We use this measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. We believe that this measure is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure may not be directly comparable to similar measures used by other companies. This measure should not be considered a substitute for operating income (loss), net income (loss), net income (loss) attributable to Comcast Corporation, net cash provided by operating activities, or other measures of performance or liquidity we have reported in accordance with GAAP. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated income before income taxes is presented in the table below.
 
Three Months Ended
March 31
(in millions)
2017
2016
Adjusted EBITDA
$
7,032

$
6,367

Depreciation
(1,915
)
(1,785
)
Amortization
(587
)
(493
)
Other income (expense) items, net
(625
)
(554
)
Income before income taxes
$
3,905

$
3,535


14


Comcast Corporation

Note 12: Condensed Consolidating Financial Information
Comcast (“Comcast Parent”), Comcast Cable Communications, LLC (“CCCL Parent”), and NBCUniversal (“NBCUniversal Media Parent”) have fully and unconditionally guaranteed each other’s debt securities, including the Comcast revolving credit facility.
Comcast Parent and CCCL Parent also fully and unconditionally guarantee NBCUniversal Enterprise’s $3.3 billion principal amount of senior notes, revolving credit facility and commercial paper program. NBCUniversal Media Parent does not guarantee the NBCUniversal Enterprise senior notes, revolving credit facility or commercial paper program.
Comcast Parent provides an unconditional subordinated guarantee of the $185 million principal amount currently outstanding of Comcast Holdings’ ZONES due October 2029 . Neither CCCL Parent nor NBCUniversal Media Parent guarantee the Comcast Holdings’ ZONES due October 2029 . None of Comcast Parent, CCCL Parent nor NBCUniversal Media Parent guarantee the $62 million principal amount currently outstanding of Comcast Holdings’ ZONES due November 2029 or the $3.4 billion of Universal Studios Japan term loans.

15


Comcast Corporation

Condensed Consolidating Balance Sheet
March 31, 2017
(in millions)
Comcast
Parent
Comcast
Holdings
CCCL
Parent
NBCUniversal
Media Parent
Non-
Guarantor
Subsidiaries
Elimination
and
Consolidation
Adjustments
Consolidated
Comcast
Corporation
Assets







Cash and cash equivalents
$

$

$

$
270

$
3,752

$

$
4,022

Receivables, net




7,525


7,525

Programming rights




1,479


1,479

Other current assets
96



60

2,063


2,219

Total current assets
96



330

14,819


15,245

Film and television costs




6,968


6,968

Investments
84


10

657

5,187


5,938

Investments in and amounts due from subsidiaries eliminated upon consolidation
100,103

123,806

120,362

49,537

104,918

(498,726
)

Property and equipment, net
364




36,262


36,626

Franchise rights




59,364


59,364

Goodwill




36,592


36,592

Other intangible assets, net
12




19,002


19,014

Other noncurrent assets, net
1,115

666


80

1,876

(1,005
)
2,732

Total assets
$
101,774

$
124,472

$
120,372

$
50,604

$
284,988

$
(499,731
)
$
182,479

Liabilities and Equity







Accounts payable and accrued expenses related to trade creditors
$
17

$

$

$

$
6,641

$

$
6,658

Accrued participations and residuals




1,811


1,811

Accrued expenses and other current liabilities
1,582


211

361

4,942


7,096

Current portion of long-term debt
1,905


550

4

1,050


3,509

Total current liabilities
3,504


761

365

14,444


19,074

Long-term debt, less current portion
40,711

143

2,100

8,204

7,118


58,276

Deferred income taxes

524


69

35,760

(1,005
)
35,348

Other noncurrent liabilities
2,500



1,103

7,074


10,677

Redeemable noncontrolling interests and redeemable subsidiary preferred stock




1,456


1,456

Equity:







Common stock
56






56

Other shareholders’ equity
55,003

123,805

117,511

40,863

216,547

(498,726
)
55,003

Total Comcast Corporation shareholders’ equity
55,059

123,805

117,511

40,863

216,547

(498,726
)
55,059

Noncontrolling interests




2,589


2,589

Total equity
55,059

123,805

117,511

40,863

219,136

(498,726
)
57,648

Total liabilities and equity
$
101,774

$
124,472

$
120,372

$
50,604

$
284,988

$
(499,731
)
$
182,479


16


Comcast Corporation

Condensed Consolidating Balance Sheet
December 31, 2016
(in millions)
Comcast
Parent
Comcast
Holdings
CCCL
Parent
NBCUniversal
Media Parent
Non-
Guarantor
Subsidiaries
Elimination
and
Consolidation
Adjustments
Consolidated
Comcast
Corporation
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$

$

$

$
482

$
2,819

$

$
3,301

Receivables, net




7,955


7,955

Programming rights




1,250


1,250

Other current assets
151



36

3,668


3,855

Total current assets
151



518

15,692


16,361

Film and television costs




7,252


7,252

Investments
75



651

4,521


5,247

Investments in and amounts due from subsidiaries eliminated upon consolidation
98,350

120,071

117,696

47,393

97,704

(481,214
)

Property and equipment, net
298




35,955


36,253

Franchise rights




59,364


59,364

Goodwill




35,980


35,980

Other intangible assets, net
13




17,261


17,274

Other noncurrent assets, net
1,138

638


89

1,921

(1,017
)
2,769

Total assets
$
100,025

$
120,709

$
117,696

$
48,651

$
275,650

$
(482,231
)
$
180,500

Liabilities and Equity
 
 
 
 
 
 
 
Accounts payable and accrued expenses related to trade creditors
$
23

$

$

$

$
6,892

$

$
6,915

Accrued participations and residuals




1,726


1,726

Accrued expenses and other current liabilities
1,726


341

302

5,045


7,414

Current portion of long-term debt
3,739


550

4

1,187


5,480

Total current liabilities
5,488


891

306

14,850


21,535

Long-term debt, less current portion
38,123

141

2,100

8,208

6,994


55,566

Deferred income taxes

542


70

35,259

(1,017
)
34,854

Other noncurrent liabilities
2,471



1,166

7,288


10,925

Redeemable noncontrolling interests and redeemable subsidiary preferred stock




1,446


1,446

Equity:
 
 
 
 
 
 
 
Common stock
56






56

Other shareholders’ equity
53,887

120,026

114,705

38,901

207,582

(481,214
)
53,887

Total Comcast Corporation shareholders’ equity
53,943

120,026

114,705

38,901

207,582

(481,214
)
53,943

Noncontrolling interests




2,231


2,231

Total equity
53,943

120,026

114,705

38,901

209,813

(481,214
)
56,174

Total liabilities and equity
$
100,025

$
120,709

$
117,696

$
48,651

$
275,650

$
(482,231
)
$
180,500

 


17


Comcast Corporation

Condensed Consolidating Statement of Income
For the Three Months Ended March 31, 2017
(in millions)
Comcast
Parent
Comcast
Holdings
CCCL
Parent
NBCUniversal
Media Parent
Non-
Guarantor
Subsidiaries
Elimination
and
Consolidation
Adjustments
Consolidated
Comcast
Corporation
Revenue:
 
 
 
 
 
 
 
Service revenue
$

$

$

$

$
20,463

$

$
20,463

Management fee revenue
275


270



(545
)

 
275


270


20,463

(545
)
20,463

Costs and Expenses:
 
 
 
 
 
 
 
Programming and production




6,074


6,074

Other operating and administrative
170


270

306

5,626

(545
)
5,827

Advertising, marketing and promotion




1,530


1,530

Depreciation
7




1,908


1,915

Amortization
2




585


587

 
179


270

306

15,723

(545
)
15,933

Operating income (loss)
96



(306
)
4,740


4,530

Other Income (Expense):
 
 
 
 
 
 
 
Interest expense
(517
)
(3
)
(60
)
(112
)
(63
)

(755
)
Investment income (loss), net
1

28


(4
)
34


59

Equity in net income (losses) of investees, net
2,839

2,650

2,320

1,597

1,236

(10,606
)
36

Other income (expense), net



28

7


35

 
2,323

2,675

2,260

1,509

1,214

(10,606
)
(625
)
Income (loss) before income taxes
2,419

2,675

2,260

1,203

5,954

(10,606
)
3,905

Income tax (expense) benefit
147

(9
)
21

(3
)
(1,414
)

(1,258
)
Net income (loss)
2,566

2,666

2,281

1,200

4,540

(10,606
)
2,647

Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock




(81
)

(81
)
Net income (loss) attributable to Comcast Corporation
$
2,566

$
2,666

$
2,281

$
1,200

$
4,459

$
(10,606
)
$
2,566

Comprehensive income (loss) attributable to Comcast Corporation
$
2,810

$
2,716

$
2,282

$
1,406

$
4,703

$
(11,107
)
$
2,810



18


Comcast Corporation

Condensed Consolidating Statement of Income
For the Three Months Ended March 31, 2016  
(in millions)
Comcast
Parent
Comcast
Holdings
CCCL
Parent
NBCUniversal
Media Parent
Non-
Guarantor
Subsidiaries
Elimination
and
Consolidation
Adjustments
Consolidated
Comcast
Corporation
Revenue:
 
 
 
 
 
 
 
Service revenue
$

$

$

$

$
18,790

$

$
18,790

Management fee revenue
259


254



(513
)

 
259


254


18,790

(513
)
18,790

Costs and Expenses:
 
 
 
 
 
 
 
Programming and production




5,431


5,431

Other operating and administrative
156


254

295

5,334

(513
)
5,526

Advertising, marketing and promotion




1,466


1,466

Depreciation
8




1,777


1,785

Amortization
1




492


493

 
165


254

295

14,500

(513
)
14,701

Operating income (loss)
94



(295
)
4,290


4,089

Other Income (Expense):
 
 
 
 
 
 
 
Interest expense
(451
)
(3
)
(59
)
(117
)
(73
)

(703
)
Investment income (loss), net



(2
)
32


30

Equity in net income (losses) of investees, net
2,366

2,264

2,114

1,297

991

(9,043
)
(11
)
Other income (expense), net



124

6


130

 
1,915

2,261

2,055

1,302

956

(9,043
)
(554
)
Income (loss) before income taxes
2,009

2,261

2,055

1,007

5,246

(9,043
)
3,535

Income tax (expense) benefit
125

1

21

(5
)
(1,453
)

(1,311
)
Net income (loss)
2,134

2,262

2,076

1,002

3,793

(9,043
)
2,224

Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock




(90
)

(90
)
Net income (loss) attributable to Comcast Corporation
$
2,134

$
2,262

$
2,076

$
1,002

$
3,703

$
(9,043
)
$
2,134

Comprehensive income (loss) attributable to Comcast Corporation
$
2,224

$
2,306

$
2,078

$
1,146

$
3,705

$
(9,235
)
$
2,224



19


Comcast Corporation

Condensed Consolidating Statement of Cash Flows
For the Three Months Ended March 31, 2017  
(in millions)
Comcast
Parent
Comcast
Holdings
CCCL
Parent
NBCUniversal
Media Parent
Non-
Guarantor
Subsidiaries
Elimination
and
Consolidation
Adjustments
Consolidated
Comcast
Corporation
Net cash provided by (used in) operating activities
$
(453
)
$
(10
)
$
(168
)
$
(330
)
$
6,617

$