Item 8. Comcast Corporation Financial Statements and Supplementary Data

Index	Page
Report of Management	65
Report of Independent Registered Public Accounting Firm	66
Consolidated Statement of Income	67
Consolidated Statement of Comprehensive Income	68
Consolidated Statement of Cash Flows	69
Consolidated Balance Sheet	70
Consolidated Statement of Changes in Equity	71
Notes to Consolidated Financial Statements	72

NBCUniversal Media, LLC

See Index to NBCUniversal Media, LLC Financial Statements and Supplemental Data on page 128.

	64	Comcast 2018 Annual Report on Form 10-K

Report of Management

Management’s Report on Comcast’s Financial Statements

Our management is responsible for the preparation, integrity and fair presentation of information in Comcast’s consolidated financial statements, including estimates and judgments. The consolidated financial statements presented in this report have been prepared in accordance with accounting principles generally accepted in the United States. Our management believes the Comcast consolidated financial statements and other financial information included in this report fairly present, in all material respects, Comcast’s financial condition, results of operations and cash flows as of and for the periods presented in this report. The Comcast consolidated financial statements have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report, which is included herein.

Management’s Report on Comcast’s Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining an adequate system of internal control over financial reporting. Our system of internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States.

Our internal control over financial reporting includes those policies and procedures that:

•	Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of our assets.

•	Provide reasonable assurance that our transactions are recorded as necessary to permit preparation of our financial statements in accordance with accounting principles generally accepted in the United States, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our directors.

•	Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements. Further, because of changes in conditions, effectiveness of internal control over financial reporting may vary over time. Our system contains self-monitoring mechanisms, and actions are taken to correct deficiencies as they are identified.

Our management conducted an evaluation of the effectiveness of the system of internal control over financial reporting based on the framework in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management concluded that Comcast’s system of internal control over financial reporting was effective as of December 31, 2018. The scope of management’s assessment of the effectiveness of internal control over financial reporting includes all of the Company’s consolidated operations except for the operations of Sky Limited, which the Company acquired through a purchase business combination during the year ended December 31, 2018. Sky Limited represents approximately 5% of the Company’s consolidated revenues for the year ended December 31, 2018 and approximately 24% of the Company’s consolidated total assets as of December 31, 2018. The effectiveness of Comcast’s internal controls over financial reporting of Comcast has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report, which is included herein.

Audit Committee Oversight

The Audit Committee of the Board of Directors, which is comprised solely of independent directors, has oversight responsibility for our financial reporting process and the audits of Comcast’s consolidated financial statements and internal control over financial reporting. The Audit Committee meets regularly with management and with our internal auditors and independent registered public accounting firm (collectively, the “auditors”) to review matters related to the quality and integrity of our financial reporting, internal control over financial reporting (including compliance matters related to our Code of Conduct), and the nature, extent, and results of internal and external audits. Our auditors have full and free access and report directly to the Audit Committee. The Audit Committee recommended, and the Board of Directors approved, that the Comcast audited consolidated financial statements be included in this Form 10-K.

/s/ BRIAN L. ROBERTS		/s/ MICHAEL J. CAVANAGH		/s/ DANIEL C. MURDOCK
Brian L. Roberts		Michael J. Cavanagh		Daniel C. Murdock
Chairman and Chief Executive Officer		Senior Executive Vice President and Chief Financial Officer		Senior Vice President, Chief Accounting Officer and Controller

Comcast 2018 Annual Report on Form 10-K	65

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of

Comcast Corporation

Philadelphia, Pennsylvania

Opinions on the Consolidated Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Comcast Corporation and subsidiaries (the “Company”) as of December 31, 2018 and 2017, the related consolidated statements of income, comprehensive income, cash flows and changes in equity for each of the three years in the period ended December 31, 2018, and the related notes (collectively referred to as the “financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

As described in Management’s Report on Comcast’s Internal Control Over Financial Reporting, management excluded from its assessment the internal control over financial reporting at Sky Limited, which the Company acquired through a purchase business combination during the year ended December 31, 2018. Sky Limited represents approximately 5% of the Company’s consolidated revenues for the year ended December 31, 2018, and approximately 24% of the Company’s consolidated total assets as of December 31, 2018. Accordingly, our audit did not include the internal control over financial reporting at Sky Limited.

Basis for Opinions

The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Comcast’s Internal Control Over Financial Reporting. Our responsibility is to express an opinion on these financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte & Touche LLP

Philadelphia, Pennsylvania

January 31, 2019

We have served as the Company’s auditor since 1963.

	66	Comcast 2018 Annual Report on Form 10-K

Comcast Corporation

Consolidated Statement of Income

Year ended December 31 (in millions, except per share data)	2018				2017				2016
Revenue	$	94,507			$	85,029			$	80,736
Costs and Expenses:
Programming and production	29,692				25,355				24,348
Other operating and administrative	28,094				25,449				23,840
Advertising, marketing and promotion	7,036				6,519				6,291
Depreciation	8,281				7,914				7,464
Amortization	2,736				2,216				1,962
Other operating gains	(341		)		(442		)		—
Total costs and expenses	75,498				67,011				63,905
Operating income	19,009				18,018				16,831
Interest expense	(3,542		)		(3,086		)		(2,942		)
Investment and other income (loss), net	(225		)		421				437
Income before income taxes	15,242				15,353				14,326
Income tax (expense) benefit	(3,380		)		7,569				(5,298		)
Net income	11,862				22,922				9,028
Less: Net income attributable to noncontrolling interests and redeemable subsidiary preferred stock	131				187				350
Net income attributable to Comcast Corporation	$	11,731			$	22,735			$	8,678
Basic earnings per common share attributable to Comcast Corporation shareholders	$	2.56			$	4.83			$	1.80
Diluted earnings per common share attributable to Comcast Corporation shareholders	$	2.53			$	4.75			$	1.78
Dividends declared per common share	$	0.76			$	0.63			$	0.55

See accompanying notes to consolidated financial statements.

Comcast 2018 Annual Report on Form 10-K	67

Comcast Corporation

Consolidated Statement of Comprehensive Income

Year ended December 31 (in millions)	2018				2017				2016
Net income	$	11,862			$	22,922			$	9,028
Unrealized gains (losses) on marketable securities, net of deferred taxes of $(1), $25 and $(1)	1				(42		)		—
Deferred gains (losses) on cash flow hedges, net of deferred taxes of $(3), $(35) and $35	50				60				(60		)
Amounts reclassified to net income:
Realized (gains) losses on marketable securities, net of deferred taxes of $—, $1 and $1	—				(1		)		(1		)
Realized (gains) losses on cash flow hedges, net of deferred taxes of $(4), $22 and $(54)	(6		)		(37		)		92
Employee benefit obligations, net of deferred taxes of $(2), $(24) and $(125)	7				41				213
Currency translation adjustments, net of deferred taxes of $9, $(40) and $(14)	(916		)		147				102
Comprehensive income	10,998				23,090				9,374
Less: Net income attributable to noncontrolling interests and redeemable subsidiary preferred stock	131				187				350
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(41		)		81				74
Comprehensive income attributable to Comcast Corporation	$	10,908			$	22,822			$	8,950

See accompanying notes to consolidated financial statements.

	68	Comcast 2018 Annual Report on Form 10-K

Comcast Corporation

Consolidated Statement of Cash Flows

Year ended December 31 (in millions)	2018				2017				2016
Operating Activities
Net income	$	11,862			$	22,922			$	9,028
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other operating gains	10,676				9,688				9,426
Share-based compensation	826				751				640
Noncash interest expense (income), net	364				272				230
Net (gain) loss on investment activity and other	576				(194		)		19
Deferred income taxes	290				(10,646		)		1,434
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables, net	(802		)		(869		)		(649		)
Film and television costs, net	(395		)		(197		)		(501		)
Accounts payable and accrued expenses related to trade creditors	(394		)		173				378
Other operating assets and liabilities	1,294				(639		)		(314		)
Net cash provided by operating activities	24,297				21,261				19,691
Investing Activities
Capital expenditures	(9,774		)		(9,550		)		(9,135		)
Cash paid for intangible assets	(1,935		)		(1,605		)		(1,552		)
Acquisitions and construction of real estate properties	(143		)		(418		)		(428		)
Construction of Universal Beijing Resort	(460		)		(71		)		(22		)
Acquisitions, net of cash acquired	(38,219		)		(532		)		(3,929		)
Proceeds from sales of businesses and investments	141				150				218
Purchases of investments	(1,257		)		(2,292		)		(1,697		)
Deposits	—				—				(1,749		)
Other	793				785				29
Net cash provided by (used in) investing activities	(50,854		)		(13,533		)		(18,265		)
Financing Activities
Proceeds from (repayments of) short-term borrowings, net	379				(1,905		)		1,790
Proceeds from borrowings	44,781				11,466				9,231
Repurchases and repayments of debt	(8,798		)		(6,364		)		(3,052		)
Repurchases of common stock under repurchase program and employee plans	(5,320		)		(5,435		)		(5,352		)
Dividends paid	(3,352		)		(2,883		)		(2,601		)
Purchase of Universal Studios Japan noncontrolling interests	—				(2,299		)		—
Issuances of common stock	—				—				23
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock	(277		)		(252		)		(253		)
Other	(273		)		100				(220		)
Net cash provided by (used in) financing activities	27,140				(7,572		)		(434		)
Impact of foreign currency on cash, cash equivalents and restricted cash	(245		)		—				—
Increase (decrease) in cash, cash equivalents and restricted cash	338				156				992
Cash, cash equivalents and restricted cash, beginning of year	3,571				3,415				2,423
Cash, cash equivalents and restricted cash, end of year	$	3,909			$	3,571			$	3,415

See accompanying notes to consolidated financial statements.

Comcast 2018 Annual Report on Form 10-K	69

Comcast Corporation

Consolidated Balance Sheet

December 31 (in millions, except share data)	2018				2017
Assets
Current Assets:
Cash and cash equivalents	$	3,814			$	3,428
Receivables, net	11,104				8,834
Programming rights	3,746				1,613
Other current assets	3,184				2,468
Total current assets	21,848				16,343
Film and television costs	7,837				7,087
Investments	7,883				6,931
Property and equipment, net	44,437				38,470
Franchise rights	59,365				59,364
Goodwill	66,154				36,780
Other intangible assets, net	38,358				18,133
Other noncurrent assets, net	5,802				4,354
Total assets	$	251,684			$	187,462
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses related to trade creditors	$	8,494			$	6,908
Accrued participations and residuals	1,808				1,644
Deferred revenue	2,182				1,687
Accrued expenses and other current liabilities	10,721				6,620
Current portion of long-term debt	4,398				5,134
Total current liabilities	27,603				21,993
Long-term debt, less current portion	107,345				59,422
Deferred income taxes	27,589				24,259
Other noncurrent liabilities	15,329				10,972
Commitments and contingencies (Note 17)
Redeemable noncontrolling interests and redeemable subsidiary preferred stock	1,316				1,357
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, 5,389,309,175 and 5,507,854,670; outstanding, 4,516,518,147 and 4,635,063,642	54				55
Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375	—				—
Additional paid-in capital	37,461				37,497
Retained earnings	41,983				38,202
Treasury stock, 872,791,028 Class A common shares	(7,517		)		(7,517		)
Accumulated other comprehensive income (loss)	(368		)		379
Total Comcast Corporation shareholders’ equity	71,613				68,616
Noncontrolling interests	889				843
Total equity	72,502				69,459
Total liabilities and equity	$	251,684			$	187,462

See accompanying notes to consolidated financial statements.

	70	Comcast 2018 Annual Report on Form 10-K

Comcast Corporation

Consolidated Statement of Changes in Equity

	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												770																				770
Repurchases of common stock under repurchase program and employee plans					(1		)					(999		)		(4,376		)														(5,376		)
Employee stock purchase plans												156																				156
Dividends declared																(2,656		)														(2,656		)
Other comprehensive income (loss)																								272				74				346
Contributions from (distributions to) noncontrolling interests, net	(16		)																									(134		)		(134		)
Other	148											(187		)		6												325				144
Net income	93															8,678												257				8,935
Balance, December 31, 2016	1,446				56			—				38,230				23,065				(7,517		)		98				2,231				56,163
Stock compensation plans												554																				554
Repurchases of common stock under repurchase program and employee plans					(1		)					(832		)		(4,623		)														(5,456		)
Employee stock purchase plans												190																				190
Dividends declared																(2,975		)														(2,975		)
Other comprehensive income (loss)																								87				81				168
Contributions from (distributions to) noncontrolling interests, net	(39		)																									(108		)		(108		)
Purchase of Universal Studios Japan noncontrolling interests												(696		)										194				(1,736		)		(2,238		)
Other	(123		)									51																261				312
Net income	73															22,735												114				22,849
Balance, December 31, 2017	1,357				55			—				37,497				38,202				(7,517		)		379				843				69,459
Cumulative effects of adoption of accounting standards																(43		)						76								33
Stock compensation plans												607																				607
Repurchases of common stock under repurchase program and employee plans					(1		)					(920		)		(4,408		)														(5,329		)
Employee stock purchase plans												214																				214
Dividends declared																(3,499		)														(3,499		)
Other comprehensive income (loss)																								(823		)		(41		)		(864		)
Contributions from (distributions to) noncontrolling interests, net	(56		)																									294				294
Other	(43		)									63																(280		)		(217		)
Net income	58															11,731												73				11,804
Balance, December 31, 2018	$	1,316			$	54		$	—			$	37,461			$	41,983			$	(7,517	)		$	(368	)		$	889			$	72,502

See accompanying notes to consolidated financial statements.

Comcast 2018 Annual Report on Form 10-K	71

Comcast Corporation

Notes to Consolidated Financial Statements

Note 1: Basis of Presentation and Summary of Significant Accounting Policies

We are a global media and technology company with three primary businesses, Comcast Cable, NBCUniversal and Sky. We were incorporated under the laws of Pennsylvania in December 2001. Through our predecessors, we have developed, managed and operated cable systems since 1963.

In the fourth quarter of 2018, we acquired a 100% interest in Sky through a series of transactions, for total cash consideration of £30.2 billion (approximately $39.4 billion using the exchange rates on the purchase dates).

We present our operations for (1) Comcast Cable in one reportable business segment, referred to as Cable Communications; (2) NBCUniversal in four reportable business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks (collectively, the “NBCUniversal segments”); and (3) Sky in one reportable business segment. See Note 2 for additional information on our reportable business segments.

Basis of Presentation

The accompanying consolidated financial statements include all entities in which we have a controlling voting interest 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 operations where the functional currency is the local currency, primarily the British pound, euro, Japanese yen and Chinese renminbi, into U.S. dollars at the exchange rate as of the balance sheet date and translate revenue and expenses using average monthly exchange rates. The related translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in our consolidated balance sheet. Any foreign currency transaction gains or losses are included in our consolidated statement of income.

Reclassifications

Reclassifications have been made to our consolidated financial statements for the prior periods to conform to classifications used in 2018. See Note 9 for a discussion of the effects of the adoption of new accounting pronouncements on our consolidated financial statements.

Accounting Policies

Our consolidated financial statements are prepared in accordance with GAAP, which require us to select accounting policies, including in certain cases industry-specific policies, and make estimates that affect the reported amount of assets, liabilities, revenue and expenses, and the related disclosure of contingent assets and contingent liabilities. Actual results could differ from these estimates. We believe that the judgments and related estimates for the following items are critical in the preparation of our consolidated financial statements:

•	valuation and impairment testing of cable franchise rights (see Note 12)

•	film and television costs (see Note 4)

•	fair value of acquisition-related assets and liabilities (see Note 8)

In addition, the following accounting policies are specific to the industries in which we operate:

•	capitalization and amortization of film and television costs (see Note 4)

•	costs for connecting customers to our cable systems (see Note 11)

Information on other accounting policies and methods that we use in the preparation of our consolidated financial statements are included, where applicable, in their respective footnotes that follow. Below is a discussion of accounting policies and methods used in our consolidated financial statements that are not presented within other footnotes.

	72	Comcast 2018 Annual Report on Form 10-K

Comcast Corporation

Advertising Expenses

Advertising costs are expensed as incurred.

Cash Equivalents

The carrying amounts of our cash equivalents approximate their fair values. Our cash equivalents consist primarily of money market funds and U.S. government obligations, as well as commercial paper and certificates of deposit with maturities of three months or less when purchased.

Derivative Financial Instruments

We use derivative financial instruments to manage our exposure to the risks associated with fluctuations in interest rates, foreign exchange rates and equity prices. Our objective is to manage the financial and operational exposure arising from these risks by offsetting gains and losses on the underlying exposures with gains and losses on the derivatives used to economically hedge them.

Our derivative financial instruments are recorded in our consolidated balance sheet at fair value. Refer to Note 7 for further information on foreign exchange derivatives related to debt. The impact of our remaining derivative financial instruments on our consolidated financial statements was not material in any of the periods presented.

Fair Value Measurements

The accounting guidance related to fair value measurements establishes a hierarchy 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: Values are determined using quoted market prices for identical financial instruments in an active market

•	Level 2: Values are determined using quoted prices for similar financial instruments and valuation models whose inputs are observable

•	Level 3: 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

We use these levels of hierarchy to measure the fair value of certain financial instruments on a recurring basis, such as for investments; on a non-recurring basis, such as for acquisitions and impairment testing; for disclosure purposes, such as for long-term debt; and for other applications, as discussed in their respective footnotes. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation and classification within the fair value hierarchy.

Asset Retirement Obligations

Certain of our cable franchise agreements and lease agreements contain provisions requiring us to restore facilities or remove property in the event that the franchise or lease agreement is not renewed. We expect to continually renew our cable franchise agreements and therefore cannot reasonably estimate liabilities associated with such agreements. A remote possibility exists that franchise agreements could be terminated unexpectedly, which could result in us incurring significant expense in complying with restoration or removal provisions. We do not have any material liabilities related to asset retirements recorded in our consolidated financial statements.

Note 2: Segment Information

Our Cable Communications segment primarily manages and operates cable systems that serve residential and business customers in the United States and sells advertising. As of December 31, 2018, our cable systems had 30.3 million total customer relationships, including 28.0 million residential and 2.3 million business customer relationships, of which 27.2 million received our high-speed internet service, 22.0 million received our video service, 11.4 million received our voice service and 1.3 million received our security and automation service.

Our Cable Networks segment consists primarily of a diversified portfolio of cable television networks. Our Cable Networks segment is comprised of our national cable networks that provide a variety of entertainment, news and information, and sports content; our regional sports and news networks; our international cable networks; our cable television studio production operations; and our various digital properties.

Our Broadcast Television segment consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo owned local broadcast television stations, the NBC Universo national cable network, our broadcast television studio production operations, and our various digital properties.

Comcast 2018 Annual Report on Form 10-K	73

Comcast Corporation

Our Filmed Entertainment segment primarily produces, acquires, markets and distributes filmed entertainment worldwide. Our films are produced primarily under the Universal Pictures, Illumination, DreamWorks Animation and Focus Features names.

Our Theme Parks segment consists primarily of our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. In addition, along with a consortium of Chinese state-owned companies, we are developing a Universal theme park and resort in Beijing, China.

Our Sky segment consists of the operations of Sky, which is a leading entertainment company in Europe. It is primarily a direct-to-consumer business, providing satellite and OTT video, high-speed internet, voice, and wireless phone services, and as of December 31, 2018 Sky had 23.6 million retail customer relationships. Sky is also a content business, operating entertainment networks, the Sky News broadcast network and Sky Sports networks.

Our other business interests, which are included in Corporate and Other, consist primarily of our wireless phone service and Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania.

We use Adjusted EBITDA to evaluate the profitability of our operating segments, and the components of net income attributable to Comcast Corporation excluded from Adjusted EBITDA are not separately evaluated. To be consistent with our current management reporting presentation, certain 2018, 2017 and 2016 operating results were reclassified related to certain NBCUniversal businesses now presented in the Sky segment. We do not present a measure of total assets for our reportable business segments as this information is not used by management to allocate resources and capital. Our financial data by business segment is presented in the tables below.

(in millions)	Revenue			Adjusted EBITDA(e)			Depreciation and Amortization			Capital Expenditures			Cash Paid for Intangible Assets
2018
Cable Communications	$	55,143		$	22,447		$	8,264		$	7,716		$	1,282
NBCUniversal
Cable Networks(a)	11,773			4,428			738			42			23
Broadcast Television(a)	11,439			1,657			146			204			81
Filmed Entertainment	7,152			734			145			35			25
Theme Parks	5,683			2,455			660			1,143			173
Headquarters and Other(b)	63			(680		)	419			306			146
Eliminations(a)(c)	(349		)	4			—			—			—
NBCUniversal	35,761			8,598			2,108			1,730			448
Sky	4,587			692			539			222			137
Corporate and Other(d)	1,403			(1,545		)	106			106			68
Eliminations(a)(c)	(2,387		)	(27		)	—			—			—
Comcast Consolidated	$	94,507		$	30,165		$	11,017		$	9,774		$	1,935

(in millions)	Revenue			Adjusted EBITDA(e)			Depreciation and Amortization			Capital Expenditures			Cash Paid for Intangible Assets
2017
Cable Communications	$	53,070		$	21,068		$	8,006		$	7,952		$	1,241
NBCUniversal
Cable Networks	10,497			4,053			755			33			19
Broadcast Television	9,563			1,251			133			180			22
Filmed Entertainment	7,595			1,276			109			58			23
Theme Parks	5,443			2,384			648			960			78
Headquarters and Other(b)	45			(741		)	396			271			153
Eliminations(c)	(307		)	(5		)	—			—			—
NBCUniversal	32,836			8,218			2,041			1,502			295
Corporate and Other(d)	1,193			(1,372		)	83			96			69
Eliminations(c)	(2,070		)	42			—			—			—
Comcast Consolidated	$	85,029		$	27,956		$	10,130		$	9,550		$	1,605

	74	Comcast 2018 Annual Report on Form 10-K

Comcast Corporation

(in millions)	Revenue			Adjusted EBITDA(e)			Depreciation and Amortization			Capital Expenditures			Cash Paid for Intangible Assets
2016
Cable Communications	$	50,577		$	20,014		$	7,538		$	7,596		$	1,243
NBCUniversal
Cable Networks(a)	10,324			3,681			745			32			20
Broadcast Television(a)	10,085			1,293			125			153			19
Filmed Entertainment	6,229			662			47			33			16
Theme Parks	4,946			2,190			512			922			72
Headquarters and Other(b)	20			(699		)	376			312			156
Eliminations(a)(c)	(328		)	11			—			—			—
NBCUniversal	31,276			7,138			1,805			1,452			283
Corporate and Other(d)	886			(849		)	83			87			26
Eliminations(a)(c)	(2,003		)	(46		)	—			—			—
Comcast Consolidated	$	80,736		$	26,257		$	9,426		$	9,135		$	1,552

(a)

The revenue and operating costs and expenses associated with our broadcast of the 2018 PyeongChang Olympics and the 2016 Rio Olympics were reported in our Cable Networks and Broadcast Television segments. The revenue and operating costs and expenses associated with our broadcast of the 2018 Super Bowl were reported in our Broadcast Television segment. Included in Eliminations are transactions relating to these events that our Broadcast Television and Cable Networks segments enter into with our other segments.

(b)	NBCUniversal Headquarters and Other activities include costs associated with overhead, allocations, personnel 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 Cable Networks and Broadcast Television segments generate revenue by selling advertising to our Cable Communications segment

•	our Filmed Entertainment and Broadcast Television segments generate revenue by licensing content to our Cable Networks segment; for segment reporting, this revenue is recognized as the programming rights asset for the licensed content is amortized based on third-party revenue

•	our Filmed Entertainment, Cable Networks and Broadcast Television segments generate revenue by licensing content to our Sky segment

(d)	Corporate and Other activities include costs associated with overhead and personnel, revenue and expenses associated with other business development initiatives, including our wireless phone service, and the operations of Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania.

(e)

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 benefit (expense), investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any. From time to time we may exclude from Adjusted EBITDA the impact of certain events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance. 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.

Year ended December 31 (in millions)	2018			2017			2016
Adjusted EBITDA	$	30,165		$	27,956		$	26,257
Adjustment for legal settlement	(125		)	(250		)	—
Adjustment for Sky transaction-related costs	(355		)	—			—
Depreciation	(8,281		)	(7,914		)	(7,464		)
Amortization	(2,736		)	(2,216		)	(1,962		)
Other operating gains	341			442			—
Interest expense	(3,542		)	(3,086		)	(2,942		)
Investment and other income (loss), net	(225		)	421			437
Income before income taxes	$	15,242		$	15,353		$	14,326

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Note 3: Revenue

Year ended December 31 (in millions)	2018				2017				2016
Residential:
High-speed internet	$	17,144			$	15,681			$	14,421
Video	22,455				22,874				22,204
Voice	3,960				4,090				4,159
Business services	7,129				6,437				5,705
Advertising	2,795				2,450				2,626
Other	1,660				1,538				1,462
Total Cable Communications(a)	55,143				53,070				50,577
Distribution	6,826				6,081				5,978
Advertising	3,587				3,359				3,530
Content licensing and other	1,360				1,057				816
Total Cable Networks	11,773				10,497				10,324
Advertising	7,010				5,654				6,834
Content licensing	2,182				2,114				1,837
Distribution and other	2,247				1,795				1,414
Total Broadcast Television	11,439				9,563				10,085
Theatrical	2,111				2,192				1,560
Content licensing	2,899				2,956				2,518
Home entertainment	1,048				1,287				1,182
Other	1,094				1,160				969
Total Filmed Entertainment	7,152				7,595				6,229
Total Theme Parks	5,683				5,443				4,946
Headquarters and Other	63				45				20
Eliminations(b)	(349		)		(307		)		(328		)
Total NBCUniversal	35,761				32,836				31,276
Direct-to-consumer	3,632				—				—
Content	304				—				—
Advertising	651				—				—
Total Sky	4,587				—				—
Corporate and Other	1,403				1,193				886
Eliminations(b)	(2,387		)		(2,070		)		(2,003		)
Total revenue	$	94,507			$	85,029			$	80,736

(a)	For 2018, 2017 and 2016, 2.7%, 2.8% and 2.9%, respectively, of Cable Communications segment revenue was derived from franchise and other regulatory fees.

(b)	Included in Eliminations are transactions that our segments enter into with one another. See Note 2 for a description of these transactions.

We operate primarily in the United States, but also in select international markets primarily in Europe and Asia. The table below summarizes revenue by geographic location.

Year ended December 31 (in millions)	2018				2017				2016
United States	$	82,233			$	77,246			$	74,212
Foreign	12,274				7,783				6,524
Total revenue	$	94,507			$	85,029			$	80,736

No single customer accounted for a significant amount of revenue in any period presented.

Cable Communications Segment

Residential

Our Cable Communications segment generates revenue from residential customers that subscribe to our high-speed internet, video, voice, and security and automation services, which we market individually and as bundled services at a discounted rate in the

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United States. Revenue from residential customers that purchase bundled services at a discounted rate is allocated between the separate services based on the respective stand-alone selling prices. The stand-alone selling prices are determined based on the current prices at which we separately sell the cable services. Significant judgment is used to determine performance obligations that should be accounted for separately and the allocation of revenue when services are combined in a bundle. Revenue related to our security and automation services is reported in other revenue.

We recognize revenue from residential cable services as the services are provided on a monthly basis. Subscription rates and related charges vary according to the services and features customers receive. Customers are typically billed in advance and pay on a monthly basis. Installation fees are deferred and recognized as revenue over the period of benefit to the customer, which is less than a year for residential customers. While a portion of our residential customers are subject to contracts for their cable services, which are typically 2 years in length, based on our evaluation of the terms of these contracts, we recognize revenue for these cable services on a basis that is consistent with our customers that are not subject to contracts. Our cable services generally involve customer premise equipment, such as set-top boxes, cable modems and wireless gateways. The timing and pattern of recognition for customer premise equipment revenue are consistent with those of our residential cable services. Sales commissions related to our residential customers are expensed as incurred, as the related period of benefit is less than a year.

Under the terms of our cable franchise agreements, we are generally required to pay the cable franchising authority an amount based on our gross video revenue. We generally pass these and other similar fees through to our cable services customers and classify these fees in the respective cable service revenue, with the corresponding costs included in other operating and administrative expenses.

Business Services

Our Cable Communications segment generates revenue from business customers that subscribe to a variety of products and services. Our small business services offerings primarily include high-speed internet services, as well as voice and video services, similar to those that we provide to our residential customers, and also include cloud-based solutions that provide file sharing, online backup and web conferencing, among other features. We also offer Ethernet network services that connect multiple locations and provide higher downstream and upstream speed options to medium-sized customers and larger enterprises, as well as advanced voice services. In addition, we provide cellular backhaul services to mobile network operators to help these customers manage their network bandwidth.

Recently, we have expanded our enterprise service offerings to include a software-defined networking product and our managed solutions business to offer enterprise customers support related to Wi-Fi networks, router management, network security, business continuity risks and other services. We primarily offer our enterprise service offerings to Fortune 1000 companies and other large enterprises with multiple locations both within and outside of our cable distribution footprint where we have agreements with other companies to use their networks to provide coverage.

We recognize revenue from business services as the services are provided on a monthly basis. Substantially all of our business customers are initially under contracts, with terms typically ranging from 2 years for small and medium-sized businesses to up to 5 years for larger enterprises. At any given time, the amount of future revenue to be earned related to fixed pricing under existing agreements is equal to approximately half of our annual business services revenue, of which the substantial majority will be recognized within 2 years. Customers with contracts may only discontinue service in accordance with the terms of their contracts. We receive payments from business customers based on a billing schedule established in our contracts, which is typically on a monthly basis. Installation revenue related to our business services customers and sales commissions are generally deferred and recognized over the respective contract terms.

Advertising

Our Cable Communications segment generates revenue from the sale of advertising and technology, tools and solutions relating to advertising businesses. As part of our distribution agreements with cable networks, we generally receive an allocation of scheduled advertising time that we sell to local, regional and national advertisers. In most cases, the available advertising units are sold by our sales force. We also represent the advertising sales efforts of other multichannel video providers in some markets. Since we are acting as the principal in these arrangements, we record the advertising that is sold in advertising revenue and the fees paid to multichannel video providers in other operating and administrative expenses. In some cases, we work with representation firms as an extension of our sales force to sell a portion of the advertising units allocated to us and record the revenue net of agency commissions. In addition, we generate revenue from the sale of advertising on digital platforms. We enter into advertising arrangements with customers and have determined that a contract exists once all terms and conditions are agreed upon, typically when the number of advertising units is specifically identified and the timing of airing is scheduled. Advertisements are generally aired or viewed within one year once all terms and conditions are agreed upon. Advertising revenue from these arrangements is recognized in the period in which advertisements are aired or viewed. Payment terms vary by contract, although terms generally require payment within 30 to 60 days from when advertisements are aired or viewed. In addition, our advertising business also

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Comcast Corporation

provides technology, tools, data-driven services and marketplace solutions to customers in the media industry, which allows advertisers to more effectively engage with their target audiences. Revenue earned in this manner is recognized when services are provided.

NBCUniversal Segments

Distribution

Our Cable Networks segment generates distribution revenue from the distribution of our cable network programming to traditional and virtual multichannel video providers. Our Broadcast Television segment generates distribution revenue from the fees received under retransmission consent agreements and associated fees received from NBC-affiliated local broadcast television stations.

Distribution revenue is accounted for as a license of functional intellectual property and is recognized as programming is provided on a monthly basis, generally under multiyear agreements. Monthly fees received under distribution agreements with multichannel video providers are generally based on the number of subscribers. Payment terms and conditions vary by contract type, although terms generally include payment within 30 to 60 days.

Advertising

Our Cable Networks and Broadcast Television segments generate advertising revenue from the sale of advertising on our cable and broadcast networks, our owned local broadcast television stations and various digital properties.

We enter into advertising arrangements with customers and have determined that a contract exists once all terms and conditions are agreed upon, typically when the number of advertising units is specifically identified and the timing of airing is scheduled. Advertisements are generally aired or viewed within one year once all terms are agreed upon. Advertising revenue is recognized, net of agency commissions, in the period in which advertisements are aired or viewed and payment occurs thereafter, with payment generally required within 30 days. In some instances, we guarantee audience ratings for the advertisements. To the extent there is a shortfall in contracts where the ratings were guaranteed, a portion of the revenue is deferred until the shortfall is settled, typically by providing additional advertising units generally within one year of the original airing.

Theatrical

Our Filmed Entertainment segment generates theatrical revenue from the worldwide theatrical release of our produced and acquired films for exhibition in movie theaters. Theatrical revenue is affected by the timing, nature and number of films released in movie theaters and their acceptance by audiences. It is also affected by the number of exhibition screens, ticket prices, the percentage of ticket sale retention by the exhibitors and the popularity of competing films at the time our films are released. We recognize theatrical revenue as the films are viewed and exhibited in theaters and payment generally occurs within 30 days after exhibition.

Content Licensing

Our Cable Networks, Broadcast Television and Filmed Entertainment segments generate revenue from the licensing of our owned film and television content in the United States and internationally to cable, broadcast and premium networks and subscription video on demand services. Our content licensing agreements generally include fixed pricing and span multiple years. For example, following a film’s theatrical release, our Filmed Entertainment segment may license the exhibition rights of a film to different customers over multiple successive distribution windows.

We recognize revenue when the content is delivered and available for use by the licensee. When the term of an existing agreement is renewed or extended, we recognize revenue at the later of when the content is available or when the renewal or extension period begins. Payment terms and conditions vary by contract type, although payments are generally collected over the license term. The amount of future revenue to be earned related to fixed pricing under existing agreements primarily relates to our Filmed Entertainment segment, which at any given time equals approximately 1 to 2 years of our annual Filmed Entertainment content licensing revenue. The majority of this revenue will be recognized within 2 years. This amount may fluctuate from period to period depending on the timing of the releases and the availability of content under existing agreements and may not represent the total content licensing revenue expected to be recognized as it does not include revenue from future agreements or from variable pricing or optional purchases under existing agreements.

For our content licensing agreements that include variable pricing, such as pricing based on the number of subscribers to a subscription video on demand service sold by our customers, we generally recognize revenue as our customers sell to their subscribers.

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Home Entertainment

Our Filmed Entertainment segment generates revenue from the sale of our produced and acquired films on standard-definition digital video discs and Blu-ray discs (together, “DVDs”) and through digital distribution services. Our Cable Networks and Broadcast Television networks also generate revenue from the sale of owned programming on DVDs and through digital distribution services, which is reported in other revenue. We generally recognize revenue from DVD sales, net of estimated returns and customer incentives, on the date that DVDs are delivered to and made available for sale by retailers. Payment terms generally include payment within 60 to 90 days from delivery to the retailer.

Theme Parks

Our Theme Parks segment generates revenue primarily from ticket sales and guest spending at our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. Guest spending includes in-park spending on food, beverages and merchandise. We recognize revenue from theme park ticket sales when the tickets are used, generally within a year from the date of purchase. For annual passes, we generally recognize revenue on a straight-line basis over the period the pass is available to be used. We recognize revenue from guest spending at the point of sale.

Sky Segment

Direct-to-Consumer

The majority of Sky’s revenue is direct-to-consumer, which primarily includes subscription revenue relating to the sale of video services to residential and business customers. Sky also provides high-speed internet, voice and wireless phone services in select countries. Generally, all of our residential customers are initially under contracts, with terms typically ranging from rolling monthly to 2 years, depending on the product and territory, and may only discontinue service in accordance with the terms of their contracts. Subscription rates and related charges vary according to the services and features customers receive and the types of equipment they use. Sky’s video, high-speed internet, voice and wireless phone services generally may be sold individually or in bundles. We recognize revenue from video, high-speed internet, voice and wireless phone services as the services are provided on a monthly basis. At any given time, the amount of future revenue to be earned related to existing agreements is equal to less than half of our annual subscription revenue, which generally will be recognized within 2 years.

Content

Sky’s content revenue includes revenue from the distribution of its channels on third-party platforms and the licensing of owned programming to third-party video providers. Refer to the NBCUniversal segment discussion of distribution and content licensing revenue for accounting policies for these types of arrangements.

Advertising

Sky sells advertising and sponsorships across its owned channels and where it represents the sales efforts of third-party channels. Sky also sells targeted advertising in the U.K., Ireland and Italy, and generates revenue from online and mobile advertising and advertising across its On Demand services. Advertising revenue is recognized when the advertising is aired or viewed. Since Sky is acting as the principal in the arrangements where it represents the sales efforts of third parties, we record the advertising that is sold in advertising revenue and the fees paid to the third-party channels in other operating and administrative expenses.

Consolidated Balance Sheet

The following tables summarize our accounts receivable and other balances that are not separately presented in our consolidated balance sheet that relate to the recognition of revenue and collection of the related cash, as well as deferred costs associated with our contracts with customers.

December 31 (in millions)	2018				2017
Receivables, gross	$	11,456			$	9,122
Less: Allowance for doubtful accounts	352				288
Receivables, net	$	11,104			$	8,834

December 31 (in millions)	2018				2017
Noncurrent receivables (included in other noncurrent assets, net)	$	1,399			$	1,184
Contract acquisition and fulfillment costs (included in other noncurrent assets, net)	$	991			$	922
Noncurrent deferred revenue (included in other noncurrent liabilities)	$	650			$	497

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Comcast Corporation

In our Cable Communications and Sky segments, we manage credit risk by screening applicants through the use of internal customer information, identification verification tools and credit bureau data, as well as by offering customers the opportunity to establish automatic monthly payments. If a customer’s account is delinquent, various measures are used to collect outstanding amounts, including termination of the customer’s cable services.

Note 4: Programming and Production Costs

Video Distribution Programming Expenses

Programming expenses related to video services in Cable Communications and Sky are the fees we pay to license the programming we distribute to our video customers. Programming is generally acquired under multiyear distribution agreements, with rates typically based on the number of customers that receive the programming, channel positioning and the extent of distribution. From time to time, these contracts expire and programming continues to be provided under interim arrangements while the parties negotiate new contract terms, sometimes with effective dates that affect prior periods. While payments are typically made under the prior contract’s terms, the amount of programming expenses recorded during the interim arrangement is based on our estimate of the ultimate contract terms expected to be negotiated. Differences between actual amounts determined upon resolution of negotiations and amounts recorded during these interim arrangements are recorded in the period of resolution.

When we receive incentives from a cable network for the licensing of its programming, we defer a portion of these incentives, which are included in other current and noncurrent liabilities, and recognize them over the term of the contract as a reduction to programming expenses.

Film and Television Costs

Our Cable Networks, Broadcast Television, Filmed Entertainment and Sky segments produce owned content or acquire the rights to programming from third parties, which are described as film and television costs and programming rights, respectively.

December 31 (in millions)	2018			2017
Film Costs:
Released, less amortization	$	1,600		$	1,734
Completed, not released	144			50
In production and in development	1,063			1,149
	2,807			2,933
Television Costs:
Released, less amortization	2,289			2,260
In production and in development	953			818
	3,242			3,078
Programming rights, less amortization	5,534			2,689
	11,583			8,700
Less: Current portion of programming rights	3,746			1,613
Film and television costs	$	7,837		$	7,087

Based on our current estimates of the total remaining revenue from all sources (“ultimate revenue”), in 2019 we expect to amortize approximately $1.6 billion of film and television costs associated with our original film and television productions that have been released, or are completed and have not been released. Through 2021, we expect to amortize approximately 83% of unamortized film and television costs for our released productions, excluding amounts allocated to acquired libraries.

As of December 31, 2018, acquired film and television libraries, which are included within the “released, less amortization” captions in the table above, had remaining unamortized costs of $396 million. These costs are generally amortized over a period not to exceed 20 years, and approximately 48% of these costs are expected to be amortized through 2021.

Capitalization of Film and Television Costs

We capitalize film and television production costs, including direct costs, production overhead, print costs, development costs and interest. We amortize capitalized film and television production costs, including acquired libraries, and accrue costs associated with participation and residual payments to programming and production expenses. We generally record the amortization and the accrued costs using the individual film forecast computation method, which amortizes the costs in the same ratio as the associated ultimate revenue. Estimates of ultimate revenue and total costs are based on anticipated release patterns, public acceptance and historical results for similar productions. Unamortized film and television production costs, including acquired libraries, are stated

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at the lower of unamortized cost or fair value. We do not capitalize costs related to the distribution of a film in movie theaters or the licensing or sale of a film or television production, which primarily include costs associated with marketing and distribution.

In determining the method of amortization and estimated life of an acquired film or television library, we generally use the method and the life that most closely follow the undiscounted cash flows over the estimated life of the asset.

When an event or a change in circumstance occurs that was known or knowable as of the balance sheet date and that indicates the fair value of a film is less than its unamortized costs, we determine the fair value of the film and record an impairment charge for the amount by which the unamortized capitalized costs exceed the film’s fair value. The estimated fair value of a production is based on Level 3 inputs that primarily use an analysis of future expected cash flows. Adjustments to capitalized film production costs were not material in any of the periods presented.

We may enter into cofinancing arrangements with third parties to jointly finance or distribute certain of our film productions. Cofinancing arrangements can take various forms, but in most cases involve the grant of an economic interest in a film to an investor. The number of investors and the terms of these arrangements can vary, although investors generally assume the full risks and rewards for the portion of the film acquired in these arrangements. We account for the proceeds received from a third-party investor under these arrangements as a reduction to our capitalized film costs. Under these arrangements, the investor owns an undivided copyright interest in the film, and therefore in each period we record either a charge or a benefit to programming and production expenses to reflect the estimate of the third-party investor’s interest in the profit or loss of the film. The estimate of the third-party investor’s interest in the profit or loss of a film is determined using the ratio of actual revenue earned to date to the ultimate revenue expected to be recognized over the film’s useful life.

We capitalize the costs of programming content that we license but do not own, including rights to multiyear, live-event sports programming, at the earlier of when payments are made for the programming or when the license period begins and the content is made available for use. We amortize capitalized programming costs as the associated programs are broadcast. We generally amortize multiyear, live-event sports programming rights using the ratio of the current period revenue to the estimated ultimate revenue or under the terms of the contract.

Programming costs are recorded at the lower of unamortized cost or net realizable value on a program by program, package, channel or daypart basis. A daypart is an aggregation of programs broadcast during a particular time of day or programs of a similar type. Programming acquired by our Cable Networks segment is primarily tested on a channel basis for impairment, whereas programming acquired by our Broadcast Television segment is tested on a daypart basis. If we determine that the estimates of future cash flows are insufficient or if there is no plan to broadcast certain programming, we recognize an impairment charge to programming and production expenses.

Note 5: Income Taxes

Components of Income Tax Expense (Benefit)
Year ended December 31 (in millions)	2018				2017				2016
Current Expense (Benefit):
Federal	$	2,026			$	2,411			$	3,190
State	639				277				480
Foreign	425				389				194
	3,090				3,077				3,864
Deferred Expense (Benefit):
Federal	546				(10,651		)		1,183
State	(167		)		11				153
Foreign	(89		)		(6		)		98
	290				(10,646		)		1,434
Income tax expense (benefit)	$	3,380			$	(7,569	)		$	5,298

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Comcast Corporation

Our income tax expense (benefit) differs from the federal statutory amount because of the effect of the items detailed in the table below.

Year ended December 31 (in millions)	2018				2017				2016
Federal tax at statutory rate	$	3,201			$	5,374			$	5,014
State income taxes, net of federal benefit	212				299				373
Foreign income taxed at different rates	147				70				65
Nontaxable income attributable to noncontrolling interests	(20		)		(45		)		(128		)
Adjustments to uncertain and effectively settled tax positions, net	144				(62		)		24
Accrued interest on uncertain and effectively settled tax positions, net	29				3				17
Excess tax benefits recognized on share-based compensation	(75		)		(297		)		—
Federal tax legislation	(120		)		(12,682		)		—
Other	(138		)		(229		)		(67		)
Income tax expense (benefit)	$	3,380			$	(7,569	)		$	5,298

We base our provision for income taxes on our current period income, changes in our deferred income tax assets and liabilities, income tax rates, changes in estimates of our uncertain tax positions, tax planning opportunities available in the jurisdictions in which we operate and following the adoption of new accounting guidance related to share-based compensation in 2017, excess tax benefits or deficiencies that arise when the tax consequences of share-based compensation differ from amounts previously recognized in the statement of income. We recognize deferred tax assets and liabilities when there are temporary differences between the financial reporting basis and tax basis of our assets and liabilities and for the expected benefits of using net operating loss carryforwards. When a change in the tax rate or tax law has an impact on deferred taxes, we apply the change based on the years in which the temporary differences are expected to reverse. We record the change in our consolidated financial statements in the period of enactment.

The determination of the income tax consequences of a business combination includes identifying the tax basis of assets and liabilities acquired and any contingencies associated with uncertain tax positions assumed or resulting from the business combination. Deferred tax assets and liabilities related to temporary differences of an acquired entity are recorded as of the date of the business combination and are based on our estimate of the ultimate tax basis that will be accepted by the various tax authorities. We record liabilities for contingencies associated with prior tax returns filed by the acquired entity based on criteria set forth in the appropriate accounting guidance. We adjust the deferred tax accounts and the liabilities periodically to reflect any revised estimated tax basis and any estimated settlements with the various tax authorities. The effects of these adjustments are recorded to income tax expense (benefit).

From time to time, we engage in transactions in which the tax consequences may be subject to uncertainty. In these cases, we evaluate our tax position using the recognition threshold and the measurement attribute in accordance with the accounting guidance related to uncertain tax positions. Examples of these transactions include business acquisitions and dispositions, including consideration paid or received in connection with these transactions, certain financing transactions, and the allocation of income among state and local tax jurisdictions. Significant judgment is required in assessing and estimating the tax consequences of these transactions. We determine whether it is more likely than not that a tax position will be sustained on examination, including the resolution of any related appeals or litigation processes, based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to be recognized in our consolidated financial statements. We classify interest and penalties, if any, associated with our uncertain tax positions as a component of income tax expense (benefit).

Current and deferred foreign income taxes are incurred primarily by Sky’s and NBCUniversal’s foreign subsidiaries. In 2018, 2017 and 2016, we had foreign income before taxes of $855 million, $1 billion and $871 million, respectively, on which foreign income tax expense (benefit) was recorded.

Sky Acquisition

We recorded a $1.9 billion increase in deferred income tax liabilities in connection with the acquisition of Sky, which were primarily related to foreign temporary differences associated with intangible assets and net operating losses, and were included in the preliminary allocation of purchase price. Although it operates primarily outside the United States, Sky will be included in certain of our consolidated state tax returns, which impacted our effective tax rates in those jurisdictions. As a result, we also recorded a $244 million net decrease in the deferred state tax liability, net of federal benefit, on our existing temporary differences, which was included in income tax expense in the fourth quarter of 2018.

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Tax Reform

On December 22, 2017, new federal tax reform legislation was enacted in the United States, resulting in significant changes from previous tax law. The 2017 Tax Act reduced the federal corporate income tax rate to 21% from 35% effective January 1, 2018. The rate change, along with certain immaterial changes in tax basis resulting from the 2017 Tax Act, resulted in a reduction of our net deferred tax liabilities of $12.4 billion and a corresponding deferred income tax benefit in 2017. Our federal income tax expense for periods beginning in 2018 was based on the new rate.

The 2017 Tax Act also changed the taxation of foreign earnings, and companies generally are not subject to United States federal income taxes upon the receipt of dividends from foreign subsidiaries and are not permitted foreign tax credits related to such dividends. Beginning in 2018, in general, we no longer record United States federal income tax on our share of the income of our foreign subsidiaries, and we no longer record a benefit for foreign tax credits related to that income. Upon enactment, we reversed $382 million of net deferred tax liabilities related to our cumulative undistributed foreign earnings and deferred tax assets for related foreign tax credits, resulting in a corresponding net tax benefit in 2017. Additionally, upon enactment, there was a one-time deemed repatriation tax on undistributed foreign earnings and profits (the “transition tax”). We recognized tax expense of $101 million related to the transition tax in 2017.

The 2017 Tax Act also provides for immediate deduction of 100% of the costs of qualified property, including significant portions of our capital expenditures and film and television productions costs, that are incurred and the property placed in service during the period from September 27, 2017 to December 31, 2022. This provision will begin to phase down by 20% per year beginning January 1, 2023 and will be completely phased out as of January 1, 2027.

The adjustments to deferred tax assets and liabilities, and the liability related to the transition tax included provisional amounts estimated based on information available as of December 31, 2017. In 2018, we completed our analysis of the provisional items, resulting in immaterial adjustments primarily related to cumulative temporary differences and the one-time deemed repatriation tax on undistributed foreign earnings and profits.

In February 2018, the Bipartisan Budget Act of 2018 was enacted. As part of this legislation, various tax provisions that had expired on December 31, 2016 were retroactively extended to December 31, 2017, including the statute permitting the immediate deduction for certain film and television production costs. We recorded an income tax benefit of $128 million in the first quarter of 2018 as a result of the enactment of this legislation.

Components of Net Deferred Tax Liability
December 31 (in millions)	2018				2017
Deferred Tax Assets:
Net operating loss carryforwards	$	1,926			$	481
Nondeductible accruals and other	2,656				2,092
Less: Valuation allowance	632				377
	3,950				2,196
Deferred Tax Liabilities:
Differences between book and tax basis of property and equipment and intangible assets	29,139				25,223
Differences between book and tax basis of investments	491				466
Differences between book and tax basis of long-term debt	604				673
Differences between book and tax basis of foreign subsidiaries and undistributed foreign earnings	85				39
	30,319				26,401
Net deferred tax liability	$	26,369			$	24,205

Changes in our net deferred tax liability in 2018 that were not recorded as deferred income tax benefit (expense) are primarily related to increases of $1.9 billion related to acquisitions, including Sky, and $42 million associated with our purchase of a noncontrolling interest, and a decrease of $72 million associated with items included in other comprehensive income (loss). Our net deferred tax liability includes $15 billion related to cable franchise rights that will remain unchanged unless we recognize an impairment or dispose of a cable franchise or there is a change in the tax law. Additionally, we recorded an immaterial cumulative effect adjustment to retained earnings and accumulated other comprehensive income (loss) in 2018 as a result of the adoption of updated guidance that permitted companies to reclassify disproportionate tax effects recorded in accumulated other comprehensive income as a result of the 2017 Tax Act.

As of December 31, 2018, we had federal net operating loss carryforwards of $268 million, and various state net operating loss carryforwards, the majority of which expire in periods through 2038. As of December 31, 2018, we also had foreign net operating loss carryforwards of $6.6 billion related to the foreign operations of Sky and NBCUniversal, the majority of which can be carried

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forward indefinitely. The determination of the realization of the state and foreign net operating loss carryforwards is dependent on our subsidiaries’ taxable income or loss, apportionment percentages, redetermination from taxing authorities, and state and foreign laws that can change from year to year and impact the amount of such carryforwards. We recognize a valuation allowance if we determine it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. As of December 31, 2018 and 2017, our valuation allowance was primarily related to state and foreign net operating loss carryforwards. The increase in the valuation allowance in 2018 was primarily related to the acquisition of Sky. As a result of the timing of the acquisition, the deferred tax assets and liabilities related to Sky are preliminary and subject to change, including our assessment of the realization of Sky’s deferred tax assets of $1.5 billion related to net operating losses. We will finalize the amounts recognized as soon as possible as we obtain the information necessary to complete the analysis, but no later than one year from the acquisition date. See Note 8 for further information on the Sky acquisition.

Uncertain Tax Positions

Our liability for uncertain tax positions as of December 31, 2018 totaled $1.0 billion, which excludes the federal benefits on state tax positions that were recorded as deferred income taxes. Included in our liability for uncertain tax positions was $153 million related to tax positions of NBCUniversal and NBCUniversal Enterprise for which we have been indemnified by GE, their former parent company. We are indemnified by GE for any income tax liability attributable to the NBCUniversal contributed businesses for periods prior to the close of the NBCUniversal transaction in January 2011 and also for any income tax liability attributable to NBCUniversal Enterprise for periods prior to the date of the NBCUniversal redemption transaction in March 2013.

Reconciliation of Unrecognized Tax Benefits
(in millions)	2018				2017				2016
Gross unrecognized tax benefits, January 1	$	1,497			$	1,443			$	1,441
Additions based on tax positions related to the current year	229				121				74
Additions based on tax positions related to prior years	125				319				72
Additions from acquired subsidiaries	130				—				13
Reductions for tax positions of prior years	(346		)		(251		)		(66		)
Reductions due to expiration of statutes of limitations	(75		)		(70		)		(44		)
Settlements with tax authorities	(17		)		(65		)		(47		)
Gross unrecognized tax benefits, December 31	1,543				1,497				1,443
Positions paid	(531		)		(688		)		(340		)
Liability for uncertain tax positions	$	1,012			$	809			$	1,103

Our liability for uncertain tax positions represents the amounts recorded for potential payment obligations. Our gross unrecognized tax benefits also include amounts related to positions for which tax has been assessed and paid. If we were to recognize our gross unrecognized tax benefits in the future, $1.1 billion, which includes amounts indemnified by GE, would impact our effective tax rate and the remaining amount would increase our deferred income tax liability. The amount and timing of the recognition of any such tax benefit is dependent on the completion of examinations of our tax filings by the various tax authorities and the expiration of statutes of limitations. It is reasonably possible that certain tax contests could be resolved within the next 12 months that may result in a decrease in our effective tax rate.

As of December 31, 2018 and 2017, our accrued interest associated with our liability for uncertain tax positions was $203 million and $173 million, respectively. As of December 31, 2018 and 2017, $56 million and $43 million, respectively, of these amounts were related to tax positions of NBCUniversal and NBCUniversal Enterprise for which we have been indemnified by GE.

The IRS has completed its examination of our income tax returns for all years through 2016. Various states are examining our state tax returns and the tax years of those tax returns currently under examination vary by state, with most of the periods relating to tax years 2000 and forward. Various foreign jurisdictions are examining our tax returns and the tax years of those tax returns currently under examination vary by country, with most of the periods relating to tax years 2010 and forward.

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Note 6: Earnings Per Share

Computation of Diluted EPS
	2018								2017								2016
Year ended December 31 (in millions, except per share data)	Net Income Attributable to Comcast Corporation			Shares		Per Share Amount			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	$	11,731		4,584		$	2.56		$	22,735		4,708		$	4.83		$	8,678		4,819		$	1.80
Effect of dilutive securities:
Assumed exercise or issuance of shares relating to stock plans				56								78								56
Diluted EPS attributable to Comcast Corporation shareholders	$	11,731		4,640		$	2.53		$	22,735		4,786		$	4.75		$	8,678		4,875		$	1.78

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”). Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the combination of the option exercise price and the associated unrecognized compensation expense is greater than the average market price of our common stock. 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 in any of the periods presented.

Note 7: Long-Term Debt

Long-Term Debt Outstanding
December 31 (in millions)	Weighted-Average Interest Rate as of December 31, 2018			2018				2017
Commercial paper	2.86	%		$	675			$	903
Revolving bank credit facilities(b)	1.13	%		606				—
Term loans(a)	1.85	%		13,268				3,880
Senior notes with maturities of 5 years or less, at face value(b)	3.48	%		26,331				15,680
Senior notes with maturities between 5 and 10 years, at face value(b)	3.64	%		26,727				13,277
Senior notes with maturities greater than 10 years, at face value(b)(c)	4.68	%		45,030				31,838
Other, including capital lease obligations	—			808				921
Debt issuance costs, premiums, discounts, fair value adjustments for acquisition accounting and hedged positions, net(d)	—			(1,702		)		(1,943		)
Total debt	3.77	%	(d)	111,743				64,556
Less: Current portion				4,398				5,134
Long-term debt				$	107,345			$	59,422

(a)	Term loans consist of the following, with foreign currency denominated borrowings translated using the exchange rates as of each date:

•	Comcast: borrowings associated with the Sky transaction of £5.6 billion as of December 31, 2018 (see Note 8)

•	Universal Studios Japan: ¥390 billion and ¥435 billion as of December 31, 2018 and 2017, respectively

•	Universal Beijing Resort: ¥4 billion RMB as of December 31, 2018 (see Note 8)

(b)	The December 31, 2018 amounts include an aggregate of approximately $10.7 billion of Sky debt consolidated by Comcast. The Sky debt as of December 31, 2018 included $3.2 billion of senior notes, €4.9 billion of senior notes and £1.1 billion of senior notes that will mature between 2019 and 2035. The Sky senior notes were recorded at fair value as of October 9, 2018.

(c)	The December 31, 2018 and 2017 amounts include £625 million of 5.50% notes due 2029.

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(d) Includes the effects of our derivative financial instruments.

As of December 31, 2018 and 2017, our debt had an estimated fair value of $114.1 billion and $71.7 billion, respectively. 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.

We use cross-currency swaps for foreign currency denominated debt obligations when those obligations are denominated in a currency other than the functional currency. Cross-currency swaps effectively convert foreign currency denominated debt to debt denominated in the functional currency in order to hedge the risk that the cash flows related to annual interest payments and the payment of principal at maturity may be adversely affected by fluctuations in currency exchange rates. The gains and losses on these cross-currency swaps generally offset changes in the underlying value of the related exposures. As of December 31, 2018 and 2017, we had cross-currency swaps on $5.3 billion and $0.8 billion notional amount of our foreign currency denominated debt, respectively. As of December 31, 2018 and 2017, the aggregate fair value of these cross-currency swaps was a net liability of $23 million and $80 million, respectively.

We are also exposed to foreign currency exchange risk on the consolidation of our foreign operations. Beginning in 2018, we use foreign currency denominated debt and cross-currency swaps to hedge our net investments in certain of these subsidiaries. As of December 31, 2018, we had $15.6 billion notional amount of our foreign currency denominated debt and cross-currency swaps designated as net investment hedges in our foreign subsidiaries.

Principal Maturities of Debt
(in millions)
2019	$	4,413
2020	$	7,961
2021	$	11,548
2022	$	8,741
2023	$	7,818
Thereafter	$	72,964

2018 Debt Borrowings and Repayments

In 2018, we had borrowings of $44.8 billion that primarily included $27 billion of proceeds from the issuance of senior unsecured fixed and floating rate notes in October 2018, $8.7 billion of proceeds from sterling-denominated unsecured term loans and $3 billion of proceeds from the dollar-denominated unsecured term loan which were used to fund the acquisition of Sky, and $4 billion of proceeds from the issuance of senior unsecured fixed rate notes in February 2018.

In 2018, we made repayments of $8.8 billion of debt.

Revolving Bank Credit Facilities

As of December 31, 2018 and 2017, we had a $7.6 billion and $7.0 billion, respectively, revolving credit facility due 2021 with a syndicate of banks (“Comcast revolving credit facility”) that may be used for general corporate purposes. We may increase the commitment under the Comcast revolving credit facility up to a total of $10 billion, as well as extend the expiration date to a date no later than 2023, subject to approval of the lenders. In addition, as of December 31, 2018 and 2017, NBCUniversal Enterprise had a $1.6 billion and $1.5 billion, respectively, revolving credit facility due 2021 with a syndicate of banks (“NBCUniversal Enterprise revolving credit facility”) that may be used for general corporate purposes. We may increase the commitment under the NBCUniversal Enterprise revolving credit facility up to a total of $2 billion, as well as extend the expiration date to a date no later than 2023, subject to approval of the lenders. The interest rates on the revolving credit facilities consist of a base rate plus a borrowing margin that is determined based on Comcast’s credit rating. As of December 31, 2018, the borrowing margin for borrowings based on the London Interbank Offered Rate was 1.00%. As of December 31, 2018, Sky had a £1 billion revolving credit facility due 2021 with a syndicate of banks (“Sky revolving credit facility”) that may be used for general corporate purposes. The interest rate on the Sky revolving credit facility consists of a base rate plus a borrowing margin that is determined based on Sky’s credit rating. Each of the revolving credit facilities requires that we maintain certain financial ratios based on the respective debt and EBITDA of each entity, as defined in the credit facility. The Sky revolving credit facility also contains a ratio of EBITDA to net interest payable, as defined in the credit facility. We were in compliance with all financial covenants for all periods presented.

There were no amounts outstanding under the Comcast or NBCUniversal Enterprise revolving credit facilities as of December 31, 2018 or 2017. As of December 31, 2018, £475 million (approximately $606 million using exchange rates as of December 31, 2018) was outstanding under the Sky revolving credit facility. As of December 31, 2018, amounts available under our consolidated revolving credit facilities, net of amounts outstanding under our commercial paper programs and outstanding letters of credit,

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totaled $9.2 billion, which included $942 million and $670 million available under the NBCUniversal Enterprise and Sky revolving credit facilities, respectively.

Commercial Paper Programs

Our commercial paper programs provide a lower-cost source of borrowing to fund our short-term working capital requirements. In June 2017, we increased the Comcast and NBCUniversal Enterprise commercial paper programs to $7.0 billion and $1.5 billion, respectively, to coincide with the borrowing capacities then existing under the Comcast and NBCUniversal Enterprise revolving credit facilities. As of December 31, 2018, there was no amount outstanding under the Comcast commercial paper program. As of December 31, 2017, $903 million was outstanding under the Comcast commercial paper program. As of December 31, 2018, NBCUniversal Enterprise had $675 million face amount of commercial paper outstanding. As of December 31, 2017, NBCUniversal Enterprise had no commercial paper outstanding.

Letters of Credit and Bank Guarantees

As of December 31, 2018, we and certain of our subsidiaries had undrawn irrevocable standby letters of credit and bank guarantees totaling $463 million to cover potential fundings under various agreements.

Cross-Guarantee Structure

Comcast, Comcast Cable and NBCUniversal have fully and unconditionally guaranteed each other’s debt securities, including the Comcast revolving credit facility and the term loans borrowed and senior notes issued in connection with financing the acquisition of Sky. As of December 31, 2018, the principal amount of debt securities within the cross-guarantee structure totaled $94.2 billion, of which $26.9 billion will mature within the next 5 years.

Comcast and Comcast Cable fully and unconditionally guarantee NBCUniversal Enterprise’s $3.0 billion aggregate principal amount of senior notes, its revolving credit facility and its commercial paper program. NBCUniversal does not guarantee the NBCUniversal Enterprise senior notes, revolving credit facility, commercial paper program or its $725 million liquidation preference of Series A cumulative preferred stock.

Comcast Parent provides a full and unconditional guarantee of the Universal Studios Japan yen-denominated ¥390 billion (approximately $3.5 billion using exchange rates as of December 31, 2018) term loans with a final maturity of March 2022. None of Comcast, Comcast Cable nor NBCUniversal guarantee the $10.7 billion of Sky outstanding indebtedness or the $569 million of Universal Beijing Resort term loans.

Note 8: Significant Transactions

2018

Sky Transaction

On October 9, 2018, in connection with our offer to acquire the share capital of Sky, we acquired a controlling interest in Sky through a series of purchases of Sky shares at our offer price of £17.28 per Sky share. In the fourth quarter of 2018, we acquired the remaining Sky shares and now own 100% of Sky’s equity interests. Total cash consideration was £30.2 billion (approximately $39.4 billion using the exchange rates on the purchase dates).

Sky is one of Europe’s leading entertainment companies, which primarily includes a direct-to-consumer business, providing video, high-speed internet, voice and wireless phone services, and a content business, operating entertainment networks, the Sky News broadcast network and Sky Sports networks. We believe the combination of our global communications, media and entertainment businesses will enable the delivery of innovations in technology and a strengthened content portfolio to an expanded worldwide audience across multiple platforms.

To finance the acquisition, we issued $27.0 billion aggregate amount of senior unsecured fixed and floating rate notes that will mature between 2020 and 2058 and we borrowed £6.6 billion ($8.7 billion using the exchange rates on the dates of borrowing) under a £7.0 billion unsecured sterling-denominated term loan credit agreement and $3.0 billion under a $3.0 billion unsecured dollar-denominated term loan credit agreement. The unsecured term loans and senior notes are guaranteed by Comcast Cable and NBCUniversal. The remaining amount of consideration was funded using cash on hand.

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Preliminary Allocation of Purchase Price

We have applied acquisition accounting to Sky. Sky’s results of operations are included in our consolidated results of operations since the acquisition date and are reported in our Sky segment. The net assets of Sky were recorded at their estimated fair value using Level 3 inputs. In valuing acquired assets and liabilities, fair value estimates are based on, but are not limited to, future expected cash flows, market rate assumptions for contractual obligations and appropriate discount rates. The estimated values are not yet final and are subject to change, and the changes could be significant. We will finalize the amounts recognized as soon as possible as we obtain the information necessary to complete the analysis, but no later than one year from the acquisition date.

The table below presents the preliminary allocation of the all-cash purchase price of £30.2 billion, or $39.4 billion, to the assets and liabilities of Sky as a result of the transaction.

Preliminary Allocation of Purchase Price
(in millions)
Consideration transferred	$	39,387
Preliminary allocation of purchase price
Cash	$	1,283
Accounts receivable and other current assets	2,405
Film and television costs (See Note 4)	2,526
Property and equipment (See Note 11)	3,386
Intangible assets (See Note 12)	20,628
Accounts payable, accrued liabilities and other current liabilities	(5,791		)
Long-term debt (See Note 7)	(11,215		)
Deferred tax assets (liabilities), net (See Note 5)	(1,903		)
Other noncurrent assets and (liabilities), net	(1,809		)
Fair value of identifiable net assets acquired	9,510
Goodwill (See Note 12)	$	29,877

Intangible Assets

Finite-lived intangible assets primarily consist of customer relationships with a carrying amount of $11.8 billion and developed technology with a carrying amount of $1.8 billion, with estimated useful lives of between 4 and 18 years. Indefinite-lived assets consist of trade names with a carrying amount of $6.8 billion.

Goodwill

Goodwill consists primarily of intangible assets that do not qualify for separate recognition, including increased footprint, assembled workforce, noncontractual relationships and agreements. Since our allocation of the purchase price and estimated fair values of identifiable assets and liabilities is not yet final, the amount of the total goodwill is not yet final and is subject to change. The acquired goodwill is not expected to be deductible for tax purposes.

Acquisition-Related Costs

As a result of the Sky transaction, we have incurred incremental expenses including the U.K. share acquisition tax, success-based investment banker fees and fees to attorneys, accountants and other professional advisors, which are reflected in other operating and administrative expenses. We also incurred certain financing costs associated with our borrowings, which are reflected in interest expense. The table below presents the amounts related to these expenses included in our consolidated statement of income.

(in millions)	Year ended December 31, 2018
Other operating and administrative expenses	$	339
Interest expense	$	63

Actual and Unaudited Pro Forma Information

Our consolidated revenue and net income (loss) attributable to Comcast Corporation from October 9, 2018 to December 31, 2018 included $4.6 billion and $47.5 million, respectively, resulting from Sky’s operations.

The following unaudited pro forma information has been presented as if the Sky transaction occurred on January 1, 2017. This information is based on historical results of operations, adjusted for allocation of purchase price and other acquisition accounting adjustments, and is not necessarily indicative of what the results would have been had we operated the business since January 1, 2017. For pro forma purposes, 2018 earnings were adjusted to exclude the acquisition-related costs noted above, and 2017 earnings

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were adjusted to include these costs. No pro forma adjustments have been made for cost savings or synergies that have been or may be achieved by the combined businesses.

Year ended December 31 (in millions, except per share data)	2018			2017
Revenue	$	109,518		$	102,971
Net income attributable to Comcast Corporation	$	11,365		$	22,308
Basic earnings per common share attributable to Comcast Corporation shareholders	$	2.48		$	4.74
Diluted earnings per common share attributable to Comcast Corporation shareholders	$	2.45		$	4.65

Universal Beijing Resort

We entered into an agreement with a consortium of Chinese state-owned companies to build and operate a Universal theme park and resort in Beijing, China (“Universal Beijing Resort”). We own a 30% interest in Universal Beijing Resort and the construction is being funded through a combination of debt financing and equity contributions from the investors in accordance with their equity interests. The debt financing, which is being provided by a syndicate of Chinese financial institutions, contains certain financial and operating covenants and a maximum borrowing limit of ¥26.6 billion RMB (approximately $4 billion). The debt financing is secured by the assets of Universal Beijing Resort and the equity interests of the investors. As of December 31, 2018, Universal Beijing Resort had borrowed approximately $569 million under the financing agreement.

We have concluded that Universal Beijing Resort is a variable interest entity based on its governance structure, and we consolidate it because we have the power to direct activities that most significantly impact its economic performance. There are no liquidity arrangements, guarantees or other financial commitments between us and Universal Beijing Resort, and therefore our maximum risk of financial loss is our 30% interest. Universal Beijing Resort’s results of operations are reported in our Theme Parks segment.

In March 2018, Universal Beijing Resort received initial equity investments through a combination of cash and noncash contributions from the investors. As of December 31, 2018, our consolidated balance sheet included assets, primarily including property and equipment, and liabilities of Universal Beijing Resort totaling $1.5 billion and $1.0 billion, respectively.

2017

FCC Spectrum Auction

On April 13, 2017, the Federal Communications Commission announced the results of its spectrum auction. In the auction, NBCUniversal relinquished its spectrum rights in the New York, Philadelphia and Chicago designated market areas (“DMAs”) where NBC and Telemundo had overlapping spectrum. NBCUniversal received proceeds of $482 million in July 2017, which were recorded in other investing activities in our consolidated statement of cash flows. NBCUniversal recognized a pretax gain of $337 million in other operating gains in 2017. NBC and Telemundo stations share broadcast signals in these DMAs. In connection with the auction, we also acquired the rights to $1.7 billion of spectrum in the second quarter of 2017, which were recorded to other intangible assets, net. We had previously made a deposit of $1.8 billion to participate in the auction in 2016 and received a refund for amounts in excess of the purchase price in 2017.

Universal Studios Japan

On April 6, 2017, we acquired the remaining interests in Universal Studios Japan that we did not already own for $2.3 billion. The acquisition was funded through cash on hand and borrowings under our commercial paper program. Because we maintained control of Universal Studios Japan, the difference between the consideration transferred and the recorded value of the noncontrolling interests, as well as the related tax and accumulated other comprehensive income impacts, were recorded to additional paid-in capital.

2016

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.

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Note 9: 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 core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.

We adopted the updated guidance on January 1, 2018 on a full retrospective basis, which required us to reflect the impact of the updated guidance for all periods presented. Upon adoption, we also implemented changes in our presentation of certain revenues and expenses, primarily in our Cable Communications segment.

The adoption of the new standard did not have a material impact on our consolidated results of operations or financial position for any period presented. The updated guidance also requires additional disclosures regarding the nature, timing and uncertainty of our revenue transactions. See Note 3 for additional information.

The tables below present the effects on our consolidated statement of income and balance sheet for the prior year periods presented.

Consolidated Statement of Income
Year ended December 31, 2017 (in millions)	Previously Reported			Effects of Adoption			As Adjusted
Revenue	$	84,526		$	503		$	85,029
Total costs and expenses	$	66,539		$	472		$	67,011
Operating income	$	17,987		$	31		$	18,018
Net income attributable to Comcast Corporation	$	22,714		$	21		$	22,735

Year ended December 31, 2016 (in millions)	Previously Reported			Effects of Adoption			As Adjusted
Revenue	$	80,403		$	333		$	80,736
Total costs and expenses	$	63,544		$	361		$	63,905
Operating income	$	16,859		$	(28	)	$	16,831
Net income attributable to Comcast Corporation	$	8,695		$	(17	)	$	8,678

Consolidated Balance Sheet
December 31, 2017 (in millions)	Previously Reported			Effects of Adoption			As Adjusted
Total current assets	$	16,060		$	283		$	16,343
Film and television costs	$	7,076		$	11		$	7,087
Other intangible assets, net	$	18,779		$	(646	)	$	18,133
Other noncurrent assets, net	$	3,489		$	865		$	4,354
Total assets	$	186,949		$	513		$	187,462
Total current liabilities	$	21,561		$	432		$	21,993
Deferred income taxes	$	24,256		$	3		$	24,259
Other noncurrent liabilities	$	10,904		$	68		$	10,972
Total equity	$	69,449		$	10		$	69,459
Total liabilities and equity	$	186,949		$	513		$	187,462

Cable Communications

A summary of the changes implemented for the Cable Communications segment is presented below.

Changes to Presentation of Revenue and Related Costs

•	Revenue from our residential video services decreased with corresponding increases to high-speed internet and voice revenue due to a change in the allocation of revenue among our cable services included in a bundle that our residential customers purchase at a discount.

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•	Revenue from franchise and other regulatory fees, which was previously presented in other revenue, is now presented with the corresponding cable services. This resulted in increases to video, voice and business services revenue.

•	Residential customer late fees are now presented in other revenue. These fees were previously presented as a reduction to other operating costs and expenses.

•

Certain costs, including costs related to the fulfillment of contracts with customers, are now presented as other assets and the related costs are recognized over time in operating costs and expenses, which are comprised of total costs and expenses, excluding depreciation and amortization expense and other operating gains. These amounts were previously presented as intangible assets, and the expenses were previously presented in amortization expense. The payments related to these assets are now presented in net cash provided by operating activities rather than in cash paid for intangible assets in our consolidated statement of cash flows.

Changes to the Timing of Recognition of Revenue and Related Costs

•

Revenue for upfront installation services that are not distinct and commission expenses are now recognized as revenue and operating costs and expenses, respectively, over a period of time rather than recognized immediately as they were previously. We recorded a deferred revenue liability related to upfront installation fees that are not distinct services, which required us to allocate the installation fees to the respective service. The installation fees are generally recognized as revenue over the period that the fee would influence a customer to renew their service. This period is less than a year for Cable Communications residential customers and the term of the related contract for business services customers. Incremental costs to obtain a contract with a customer, such as commissions for our business customers, are now deferred and recognized over the contract term. Sales commissions related to our Cable Communications residential customers are expensed as incurred as the related period of benefit is less than a year.

The tables below present the effects these changes had on our Cable Communications segment revenue, operating costs and expenses, and depreciation and amortization expense as a result of the adoption of updated guidance for the prior year periods. Previously reported amounts are based on amounts previously presented in the segment information footnote.

Year ended December 31, 2017 (in millions)	Previously Reported			Effects of Adoption			As Adjusted
Residential:
High-speed internet	$	14,769		$	912		$	15,681
Video	23,129			(255		)	22,874
Voice	3,391			699			4,090
Business services	6,216			221			6,437
Advertising	2,257			193			2,450
Other	2,757			(1,219		)	1,538
Total Cable Communications revenue	$	52,519		$	551		$	53,070
Operating costs and expenses	$	31,349		$	653		$	32,002
Depreciation and amortization expense	$	8,143		$	(137	)	$	8,006

Year ended December 31, 2016 (in millions)	Previously Reported			Effects of Adoption			As Adjusted
Residential:
High-speed internet	$	13,532		$	889		$	14,421
Video	22,357			(153		)	22,204
Voice	3,540			619			4,159
Business services	5,514			191			5,705
Advertising	2,476			150			2,626
Other	2,629			(1,167		)	1,462
Total Cable Communications revenue	$	50,048		$	529		$	50,577
Operating costs and expenses	$	29,939		$	624		$	30,563
Depreciation and amortization expense	$	7,670		$	(132	)	$	7,538

Comcast 2018 Annual Report on Form 10-K	91

Comcast Corporation

NBCUniversal Segments

The adoption of the updated guidance impacted the timing of recognition for some of our revenue contracts, primarily for content licensing agreements. As a result of the adoption of the updated guidance, when the term of an existing content licensing agreement is renewed or extended, revenue is not recognized until the date when the renewal or extension period begins. Under the prior guidance, revenue for the content licensing renewal period was recognized on the date that the renewal was agreed to contractually. This change resulted in delayed revenue recognition for content licensing renewals or extensions in our Cable Networks, Broadcast Television and Filmed Entertainment segments. This change also impacted the timing of the related amortization of our film and television costs and participations and residuals expenses. The adoption of the updated guidance did not have a material impact on the results of operations or financial position for the NBCUniversal segments.

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 the changes in fair value be recognized in net income. On January 1, 2018, we adopted the updated guidance prospectively along with a related clarifying update and as a result, we recorded an immaterial cumulative effect adjustment to retained earnings, accumulated other comprehensive income (loss) and investments. See Note 10 for additional information.

Restricted Cash

In November 2016, the FASB updated the accounting guidance related to restricted cash. The new standard requires that the statement of cash flows present the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents, and a reconciliation of that total to amounts presented on the balance sheet. We adopted the updated guidance on January 1, 2018 and as required applied the retrospective transition method. The adoption did not have a material impact for any period presented.

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. We will adopt the updated accounting guidance in the first quarter of 2019 and prior periods will not be adjusted. We are currently in the process of determining the impact that the updated accounting will have on our consolidated financial statements. See Note 17 for a summary of our undiscounted minimum rental commitments under operating leases as of December 31, 2018.

Note 10: Investments

December 31 (in millions)	2018				2017
Equity method	$	4,035			$	3,546
Marketable equity securities	341				433
Nonmarketable equity securities	1,805				1,186
Other investments	1,796				1,785
Total investments	7,977				6,950
Less: Current investments	94				19
Noncurrent investments	$	7,883			$	6,931

Investment and Other Income (Loss), Net
Year ended December 31 (in millions)	2018				2017				2016
Equity in net income (losses) of investees, net	$	(364	)		$	107			$	(104	)
Realized and unrealized gains (losses) on equity securities, net	(187		)		(17		)		12
Other income (loss), net	326				331				529
Investment and other income (loss), net	$	(225	)		$	421			$	437

Beginning January 1, 2018, in connection with our adoption of the updated accounting guidance related to the recognition and measurement of financial assets and financial liabilities (see Note 9), we updated the presentation and accounting policies for our

	92	Comcast 2018 Annual Report on Form 10-K

Comcast Corporation

investments previously classified as fair value and cost method investments. The investment categories presented in the table above are based on the new guidance and updated policies, where applicable, are described below.

Equity Method

We use the equity method to account for investments in which we have the ability to exercise significant influence over the investee’s operating and financial policies or in which we hold a significant partnership or limited liability company interest. Equity method investments are recorded at cost and are adjusted to recognize (1) our proportionate share of the investee’s net income or loss after the date of investment, (2) amortization of the recorded investment that exceeds our share of the book value of the investee’s net assets, (3) additional contributions made and dividends received, and (4) impairments resulting from other-than-temporary declines in fair value. For some investments, we record our share of the investee’s net income or loss one quarter in arrears due to the timing of our receipt of such information. Gains or losses on the sale of equity method investments are recorded to other income (loss), net. If an equity method investee were to issue additional securities that would change our proportionate share of the entity, we would recognize the change, if any, as a gain or loss to other income (loss), net.

Atairos

On January 1, 2016, we established Atairos Group, Inc., a strategic company focused on investing in and operating companies in a range of industries and business sectors, both domestically and internationally. Atairos has a term of up to 12 years and is controlled by management companies led by our former CFO through interests that carry all of the voting rights. We are the only investor other than our former CFO and the other management company employees.

In February 2018, we amended our agreement with Atairos, which primarily increases our commitment to fund Atairos from up to $4 billion to up to $5 billion in the aggregate at any one time, subject to certain offsets. The amendment also increases our commitment to fund Atairos for a management fee from $40 million to $45 million annually, subject to certain annual adjustments. The management company investors have committed to fund from $50 million to $100 million, with at least $40 million to be funded by our former CFO, subject to his continued role with Atairos. Our economic interests do not carry voting rights and obligate us to absorb approximately 99% of any losses and they provide us the right to receive approximately 86% of any residual returns in Atairos, in either case on a cumulative basis.

We have concluded that Atairos is a VIE, that we do not have the power to direct the activities that most significantly impact the economic performance of Atairos as we have no voting rights and only certain consent rights, and that we are not a related party with our former CFO or the management companies. We therefore do not consolidate Atairos and account for our investment as an equity method investment. There are no other liquidity arrangements, guarantees or other financial commitments between Comcast and Atairos, and therefore our maximum risk of financial loss is our investment balance and remaining unfunded capital commitment.

As of December 31, 2018 and 2017, our investment in Atairos was $2.7 billion and $2.4 billion, respectively. In 2018, 2017 and 2016, we made cash capital contributions totaling $282 million, $994 million and $1.2 billion, respectively, to Atairos. 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 operations. We recognize our share of these gains and losses in equity in net income (losses) of investees, net. In 2018, we recognized our share of Atairos’ losses of $31 million; in 2017 and 2016, we recognized our share of Atairos’ income of $281 million and losses of $38 million respectively.

In April 2018, we sold a controlling interest in our arena management-related businesses to Atairos and received as consideration additional equity interests in Atairos. In connection with the sale of the businesses, we recognized a pre-tax gain of $200 million in other operating gains. In July 2017, we sold a business to a company owned by Atairos and received as consideration an investment in that company. In connection with the sale of the business, we recognized a pre-tax gain of $105 million in other operating gains. We account for our retained ownership in the businesses as equity method investments.

Hulu

As of December 31, 2018 and 2017, our investment in Hulu was $248 million and $249 million, respectively. In 2018, 2017 and 2016, we made cash capital contributions totaling $454 million, $300 million and $50 million, respectively, to Hulu. In 2018, 2017 and 2016, we recognized our proportionate share of Hulu’s losses of $454 million, $276 million and $168 million, respectively, in equity in net income (losses) of investees, net.

In August 2016, Time Warner Inc. acquired a 10% interest in Hulu, which diluted our interest in Hulu from 33% to 30%. For a period not to exceed 3 years, Time Warner may put its shares to Hulu or Hulu may call Time Warner’s shares under certain limited circumstances arising from regulatory review. Given the contingent nature of the put and call options, we recorded a deferred gain of $159 million and a corresponding increase to our investment in Hulu as a result of the dilution. The deferred gain will be recognized in other income (loss), net if and when the options expire unexercised.

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Comcast Corporation

The Weather Channel

In March 2018, we sold our investment in The Weather Channel cable network and recognized a pretax gain of $64 million in other income (loss), net.

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 continued 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 (loss), net.

Marketable Equity Securities

We classify publicly traded investments with readily determinable fair values that are not accounted for under the equity method as marketable equity securities. Marketable equity securities are recorded at cost and adjusted to fair value at each reporting period. The changes in fair value between measurement dates are recorded in realized and unrealized gains (losses) on equity securities, net. The fair values of our marketable equity securities are based on Level 1 inputs that use quoted market prices.

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 a marketable equity security. 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. As of December 31, 2018 and 2017, our investment in Snap was $162 million and $430 million, respectively. In 2018, we recognized unrealized losses of $268 million in realized and unrealized gains (losses) on equity securities, net related to our investment in Snap. Prior to the updated accounting guidance, unrealized gains and losses related to our investment in Snap were recorded to accumulated other comprehensive income.

Nonmarketable Equity Securities

We classify investments without readily determinable fair values that are not accounted for under the equity method as nonmarketable equity securities. The accounting guidance requires nonmarketable equity securities to be recorded at cost and adjusted to fair value at each reporting period. However, the guidance allows for a measurement alternative, which is to record the investments at cost, less impairment, if any, and subsequently adjust for observable price changes of identical or similar investments of the same issuer. We apply this measurement alternative to a majority of our nonmarketable equity securities. When an observable event occurs, we estimate the fair values of our nonmarketable equity securities based on Level 2 inputs that are derived from observable price changes of similar securities adjusted for insignificant differences in rights and obligations. The changes in value are recorded in realized and unrealized gains (losses) on equity securities, net.

Other Investments

AirTouch

We hold two series of preferred stock of Verizon Americas, Inc., formerly known as AirTouch Communications, Inc., a subsidiary of Verizon Communications Inc., which are redeemable in April 2020. As of both December 31, 2018 and 2017, our investment in AirTouch was $1.6 billion. We account for our investment in AirTouch as a held to maturity investment using the cost method. As of both December 31, 2018 and 2017, the estimated fair value of the AirTouch preferred stock was $1.7 billion.

The dividend and redemption activity of the AirTouch preferred stock determines the dividend and redemption payments associated with substantially all of the preferred shares issued by one of our consolidated subsidiaries, which is a VIE. The subsidiary has three series of preferred stock outstanding with an aggregate redemption value of $1.75 billion. Substantially all of the AirTouch preferred stock is redeemable in April 2020 at a redemption value of $1.65 billion. As of both December 31, 2018 and 2017, the two series of redeemable subsidiary preferred shares were recorded at $1.6 billion, and those amounts are included in other noncurrent liabilities. As of both December 31, 2018 and 2017, the liability related to the redeemable subsidiary preferred shares had an aggregate estimated fair value of $1.7 billion. The estimated fair values of the AirTouch preferred stock and redeemable subsidiary preferred shares 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. The one series of nonredeemable subsidiary preferred shares was recorded at $100 million as of both December 31, 2018 and 2017, and those amounts are included in noncontrolling interests in our consolidated balance sheet. The carrying amount of the nonredeemable subsidiary preferred shares approximates its fair value.

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Impairment Testing of Investments

We review our investment portfolio, other than our marketable equity securities, each reporting period to determine whether there are identified events or circumstances that would indicate there is a decline in the fair value. For our nonpublic investments, if there are no identified events or circumstances that would have a significant adverse effect on the fair value of the investment, then the fair value is not estimated. For our equity method investments and held to maturity investments, if an investment is deemed to have experienced an other-than-temporary decline below its cost basis, we reduce the carrying amount of the investment to its quoted or estimated fair value, as applicable, and establish a new cost basis for the investment. For our nonmarketable equity securities, we record the impairment to realized and unrealized gains (losses) on equity securities, net. For our equity method investments and our held to maturity investments, we record the impairment to other income (loss), net.

Note 11: Property and Equipment

December 31 (in millions)	Weighted-Average Original Useful Life as of December 31, 2018		2018				2017
Cable distribution system	11 years		$	38,380			$	36,046
Customer premise equipment	6 years		26,208				26,392
Other equipment	8 years		12,437				10,518
Buildings and leasehold improvements	30 years		14,188				12,346
Construction in process	N/A		2,991				1,752
Land	N/A		1,539				1,332
Property and equipment, at cost			95,743				88,386
Less: Accumulated depreciation			51,306				49,916
Property and equipment, net			$	44,437			$	38,470

Property and equipment are stated at cost. We capitalize improvements that extend asset lives and expense repairs and maintenance costs as incurred. We record depreciation using the straight-line method over the asset’s estimated useful life. For assets that are sold or retired, we remove the applicable cost and accumulated depreciation and, unless the gain or loss on disposition is presented separately, we recognize it as a component of depreciation expense.

In accordance with the accounting guidance related to cable television companies, our Cable Communications segment capitalizes the costs associated with the construction of and improvements to our cable transmission and distribution facilities, including scalable infrastructure and line extensions; costs associated with acquiring and deploying new customer premise equipment; and costs associated with installation of our services. Costs capitalized include all direct costs for labor and materials, as well as various indirect costs. Costs incurred in connection with subsequent disconnects and reconnects are expensed as they are incurred.

We evaluate the recoverability of our property and equipment whenever events or substantive changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is based on the cash flows generated by the underlying asset groups, including estimated future operating results, trends or other determinants of fair value. If the total of the expected future undiscounted cash flows were less than the carrying amount of the asset group, we would recognize an impairment charge to the extent the carrying amount of the asset group exceeded its estimated fair value. Unless presented separately, the impairment charge is included as a component of depreciation expense.

Comcast 2018 Annual Report on Form 10-K	95

Comcast Corporation

Note 12: Goodwill and Intangible Assets

Goodwill
				NBCUniversal
(in millions)	Cable Communications			Cable Networks			Broadcast Television			Filmed Entertainment			Theme Parks			Sky			Corporate and Other			Total
Balance, December 31, 2016	$	12,645		$	13,183		$	806		$	2,993		$	6,341		$	—		$	12		$	35,980
Acquisitions	140			241			—			32			—			—			5			418
Dispositions	—			—			—			—			—			—			(11		)	(11		)
Adjustments(a)	(1		)	1			—			185			—			—			1			186
Foreign currency translation	—			2			—			2			203			—			—			207
Balance, December 31, 2017	12,784			13,427			806			3,212			6,544			—			7			36,780
Acquisitions(b)	—			—			36			—			—			29,889			—			29,925
Dispositions	—			—			—			(8		)	—			—			(5		)	(13		)
Adjustments	—			(13		)	1			(9		)	—			—			—			(21		)
Foreign currency translation	—			(7		)	—			(11		)	140			(639		)	—			(517		)
Balance, December 31, 2018	$	12,784		$	13,407		$	843		$	3,184		$	6,684		$	29,250		$	2		$	66,154

(a)	Adjustments in 2017 primarily included the updated allocation of the purchase price for DreamWorks Animation.

(b)

Acquisitions in 2018 primarily included the Sky acquisition. As of December 31, 2018, all goodwill resulting from the Sky acquisition has been presented in the Sky segment. Our evaluation of reporting units and assignment of goodwill resulting from the Sky acquisition are preliminary and subject to change. We will finalize the analysis no later than one year from the acquisition date. See Note 8 for further information on the Sky acquisition.

Goodwill is calculated as the excess of the consideration transferred over the identifiable net assets acquired in a business combination and represents the future economic benefits expected to arise from anticipated synergies and intangible assets acquired that do not qualify for separate recognition, including assembled workforce, noncontractual relationships and other agreements. We assess the recoverability of our goodwill annually, or more frequently whenever events or substantive changes in circumstances indicate that the carrying amount of a reporting unit may exceed its fair value. We test goodwill for impairment at the reporting unit level. To determine our reporting units, we evaluate the components one level below the segment level and we aggregate the components if they have similar economic characteristics. As a result of this assessment, our reporting units are generally the same as our reportable segments. We evaluate the determination of our reporting units used to test for impairment periodically or whenever events or substantive changes in circumstances occur. The assessment of recoverability may first consider qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. A quantitative assessment is performed if the qualitative assessment results in a more-likely-than-not determination or if a qualitative assessment is not performed. The quantitative assessment considers whether the carrying amount of a reporting unit exceeds its fair value, in which case an impairment charge is recorded to the extent the reporting unit’s carrying value exceeds its fair value. Unless presented separately, the impairment charge is included as a component of amortization expense. We did not recognize any impairment charges in any of the periods presented.

Intangible Assets
		2018(a)						2017
December 31 (in millions)	Weighted-Average Original Useful Life as of December 31, 2018	Gross Carrying Amount			Accumulated Amortization			Gross Carrying Amount			Accumulated Amortization
Indefinite-Lived Intangible Assets:
Franchise rights	N/A	$	59,365					$	59,364
Trade names	N/A	9,633						2,981
FCC licenses	N/A	2,333						2,238
Finite-Lived Intangible Assets:
Customer relationships	16 years	25,046			$	(6,682	)	13,612			$	(5,819	)
Software	5 years	11,395			(5,990		)	8,258			(4,846		)
Patents and other technology rights	7 years	260			(234		)	259			(221		)
Other agreements and rights	18 years	3,885			(1,288		)	2,736			(1,065		)
Total		$	111,917		$	(14,194	)	$	89,448		$	(11,951	)

(a)	In 2018, we recorded intangible assets in connection with the Sky acquisition, which primarily consisted of customer relationships and trade names (see Note 8 for additional information).

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Comcast Corporation

Indefinite-Lived Intangible Assets

Indefinite-lived intangible assets consist primarily of our cable franchise rights. Our cable franchise rights represent the values we attributed to agreements with state and local authorities that allow access to homes and businesses in cable service areas acquired in business combinations. We do not amortize our cable franchise rights because we have determined that they meet the definition of indefinite-lived intangible assets since there are no legal, regulatory, contractual, competitive, economic or other factors which limit the period over which these rights will contribute to our cash flows. We reassess this determination periodically or whenever events or substantive changes in circumstances occur.

We assess the recoverability of our cable franchise rights and other indefinite-lived intangible assets annually, or more frequently whenever events or substantive changes in circumstances indicate that the assets might be impaired. Our three Cable Communications divisions represent the unit of account we use to test for impairment of our cable franchise rights. We evaluate the unit of account used to test for impairment of our cable franchise rights and other indefinite-lived intangible assets periodically or whenever events or substantive changes in circumstances occur to ensure impairment testing is performed at an appropriate level. The assessment of recoverability may first consider qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. A quantitative assessment is performed if the qualitative assessment results in a more-likely-than-not determination or if a qualitative assessment is not performed. When performing a quantitative assessment, we estimate the fair value of our cable franchise rights and other indefinite-lived intangible assets primarily based on a discounted cash flow analysis that involves significant judgment. When analyzing the fair values indicated under the discounted cash flow models, we also consider multiples of Adjusted EBITDA generated by the underlying assets, current market transactions and profitability information. If the fair value of our cable franchise rights or other indefinite-lived intangible assets were less than the carrying amount, we would recognize an impairment charge for the difference between the estimated fair value and the carrying value of the assets. Unless presented separately, the impairment charge is included as a component of amortization expense. We did not recognize any material impairment charges in any of the periods presented.

Finite-Lived Intangible Assets

Estimated Amortization Expense of Finite-Lived Intangible Assets
(in millions)
2019	$	3,719
2020	$	3,490
2021	$	3,104
2022	$	2,689
2023	$	2,260

Finite-lived intangible assets are subject to amortization and consist primarily of customer relationships acquired in business combinations, software, and intellectual property rights. Our finite-lived intangible assets are amortized primarily on a straight-line basis over their estimated useful life or the term of the associated agreement.

We capitalize direct development costs associated with internal-use software, including external direct costs of material and services and payroll costs for employees devoting time to these software projects. We also capitalize costs associated with the purchase of software licenses. We generally amortize them on a straight-line basis over a period not to exceed five years. We expense maintenance and training costs, as well as costs incurred during the preliminary stage of a project, as they are incurred. We capitalize initial operating system software costs and amortize them over the life of the associated hardware.

We evaluate the recoverability of our finite-lived intangible assets whenever events or substantive changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is based on the cash flows generated by the underlying asset groups, including estimated future operating results, trends or other determinants of fair value. If the total of the expected future undiscounted cash flows were less than the carrying amount of the asset group, we would recognize an impairment charge to the extent the carrying amount of the asset group exceeded its estimated fair value. Unless presented separately, the impairment charge is included as a component of amortization expense.

Comcast 2018 Annual Report on Form 10-K	97

Comcast Corporation

Note 13: Employee Benefit Plans

Deferred Compensation Plans

Year ended December 31 (in millions)	2018			2017			2016
Benefit obligation	$	2,885		$	2,539		$	2,164
Interest expense	$	222		$	209		$	178

We maintain unfunded, nonqualified deferred compensation plans for certain members of management and nonemployee directors. The amount of compensation deferred by each participant is based on participant elections. Participant accounts, except for those in the NBCUniversal plan, are credited with income primarily based on a fixed annual rate. Participants in the NBCUniversal plan designate one or more valuation funds, independently established funds or indices that are used to determine the amount of investment gain or loss in the participant’s account. Participants are eligible to receive distributions from their account based on elected deferral periods that are consistent with the plans and applicable tax law.

We have purchased life insurance policies to recover a portion of the future payments related to our deferred compensation plans. As of December 31, 2018 and 2017, the cash surrender value of these policies, which is recorded to other noncurrent assets, was $351 million and $820 million, respectively.

Postretirement Benefit Plan

Year ended December 31 (in millions)	2018			2017
Benefit obligation	$	408		$	425
Amounts in accumulated other comprehensive income not yet recognized in benefits expense	$	(439	)	$	(458	)

We sponsor a retiree health and welfare benefit plan that provides postretirement benefits to eligible employees. The plan provides, to eligible employees who retire from Comcast or its subsidiaries, an annual stipend for reimbursement of certain eligible healthcare costs. The amount of the stipend for an eligible retiree is fixed at a predetermined amount based on the retiree’s years of service and whether the retiree is eligible for Medicare. In December 2016, the plan was amended primarily to reduce the stipend benefits of active employees of Comcast and subsidiaries other than NBCUniversal who retire after December 31, 2017, and in 2017 additional amendments were made to reduce the benefits of NBCUniversal employees who retire after December 31, 2017. Additionally, under the plan, a small number of employees are also eligible to participate in legacy plan benefits that were previously sponsored by acquired companies.

The plan is unfunded and substantially all of our postretirement benefit obligations are recorded to noncurrent liabilities. The expense we recognize for the plan is determined using certain assumptions, including the discount rate. The benefits expense we recognized for the plan was not material in any of the periods presented.

Pension Plans

NBCUniversal sponsors various nonqualified defined benefit pension plans for domestic employees. Since the future benefits have been frozen since the beginning of 2013, we did not recognize service costs related to the pension plans for any period presented. The benefits expense we recognized for our defined benefit plans was not material in any of the periods presented. In addition to the defined benefit plans it sponsors, NBCUniversal is also obligated to reimburse The General Electric Company (“GE”) for future benefit payments to those participants who were vested in the supplemental pension plan sponsored by GE at the time of the NBCUniversal transaction in 2011. These pension plans are currently unfunded and we recorded a benefit obligation of $312 million and $338 million as of December 31, 2018 and 2017, respectively, which consists primarily of our obligations to reimburse GE.

Retirement Investment Plans

We sponsor several 401(k) defined contribution retirement plans that allow eligible employees to contribute a portion of their compensation through payroll deductions in accordance with specified plan guidelines. We make contributions to the plans that include matching a percentage of the employees’ contributions up to certain limits. In 2018, 2017 and 2016, expenses related to these plans totaled $546 million, $458 million and $446 million, respectively.

Multiemployer Benefit Plans

We participate in various multiemployer benefit plans, including pension and postretirement benefit plans, that cover some of our employees and temporary employees who are represented by labor unions. We also participate in other multiemployer benefit plans that provide health and welfare and retirement savings benefits to active and retired participants. We make periodic contributions to these plans in accordance with the terms of applicable collective bargaining agreements and laws but do not

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sponsor or administer these plans. We do not participate in any multiemployer benefit plans for which we consider our contributions to be individually significant.

In 2018, 2017 and 2016, the total contributions we made to multiemployer pension plans were $102 million, $97 million and $84 million, respectively. In 2018, 2017 and 2016, the total contributions we made to multiemployer postretirement and other benefit plans were $183 million, $152 million and $136 million, respectively.

If we cease to be obligated to make contributions or were to otherwise withdraw from participation in any of these plans, applicable law would require us to fund our allocable share of the unfunded vested benefits, which is known as a withdrawal liability. In addition, actions taken by other participating employers may lead to adverse changes in the financial condition of one of these plans, which could result in an increase in our withdrawal liability.

Severance Benefits

We provide severance benefits to certain former employees. A liability is recorded when payment is probable, the amount is reasonably estimable, and the obligation relates to rights that have vested or accumulated. In 2018, 2017 and 2016, we recorded severance costs of $243 million, $203 million and $315 million, respectively. Severance costs in 2016 included $61 million of severance costs associated with the acquisition of DreamWorks Animation.

Note 14: Equity

Common Stock

In the aggregate, holders of our Class A common stock have 662/3% of the voting power of our common stock and holders of our Class B common stock have 331/3% of the voting power of our common stock, which percentage is generally non-dilutable under the terms of our articles of incorporation. Each share of our Class B common stock is entitled to 15 votes. The number of votes held by each share of our Class A common stock depends on the number of shares of Class A and Class B common stock outstanding at any given time. The 331/3% aggregate voting power of our Class B common stock cannot be diluted by additional issuances of any other class of common stock. Our Class B common stock is convertible, share for share, into Class A common stock, subject to certain restrictions.

Shares of Common Stock Outstanding
(in millions)	A			B
Balance, December 31, 2015	4,875			9
Stock compensation plans	23			—
Repurchases and retirements of common stock	(161	)		—
Employee stock purchase plans	5			—
Balance, December 31, 2016	4,742			9
Stock compensation plans	19			—
Repurchases and retirements of common stock	(131	)		—
Employee stock purchase plans	5			—
Balance, December 31, 2017	4,635			9
Stock compensation plans	15			—
Repurchases and retirements of common stock	(140	)		—
Employee stock purchase plans	7			—
Balance, December 31, 2018	4,517			9

Share Repurchases

Effective January 1, 2017, our Board of Directors increased our share repurchase program authorization to a total of $12.0 billion, which does not have an expiration date. As of December 31, 2018, $2.0 billion remained under this authorization.

Share Repurchases Under Share Repurchase Program Authorization
Year ended December 31 (in millions)	2018				2017				2016
Cash consideration	$	5,000			$	5,000			$	5,000
Shares repurchased	140				131				161

Comcast 2018 Annual Report on Form 10-K	99

Comcast Corporation

Accumulated Other Comprehensive Income (Loss)
December 31 (in millions)	2018				2017
Unrealized gains (losses) on marketable securities	$	3			$	(43	)
Deferred gains (losses) on cash flow hedges	55				9
Unrecognized gains (losses) on employee benefit obligations	325				260
Cumulative translation adjustments	(751		)		153
Accumulated other comprehensive income (loss), net of deferred taxes	$	(368	)		$	379

Note 15: Share-Based Compensation

The tables below provide information on our share-based compensation.

Recognized Share-Based Compensation Expense
Year ended December 31 (in millions)	2018				2017				2016
Restricted share units	$	402			$	349			$	306
Stock options	205				205				173
Employee stock purchase plans	32				32				28
Total	$	639			$	586			$	507

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. Awards generally vest over a period of 5 years and in the case of stock options, have a 10 year term. Additionally, through our employee stock purchase plans, employees are able to purchase shares of our common stock at a discount through payroll deductions. As of December 31, 2018, all of our stock options outstanding were net settled stock options. Net settled stock options, as opposed to stock options exercised with a cash payment, result in fewer shares being issued and no cash proceeds being received by us when the options are exercised.

In connection with the acquisition of Sky in the fourth quarter of 2018, Comcast issued replacement share-based compensation awards for non-vested awards based in Sky shares that were held by Sky employees at the time of the acquisition. The replacement awards included 8 million RSUs with a grant date weighted average fair value of $35.38 per RSU that will vest in 2020 and 2021.

Stock Options and Restricted Share Units
As of December 31, 2018, unless otherwise stated (in millions, except per share data)	Stock Options				RSUs
Awards granted during 2018	41				24
Weighted-average exercise price of awards granted during 2018	$	35.81
Stock options outstanding and nonvested RSUs	200				51
Weighted-average exercise price of stock options outstanding	$	27.69
Weighted-average fair value at grant date of nonvested RSUs					$	33.77

The cost associated with our share-based compensation is based on an award’s estimated fair value at the date of grant and is recognized over the period in which any related services are provided. RSUs are valued based on the closing price of our common stock on the date of grant and are discounted for the lack of dividends, if any, during the vesting period. We use the Black-Scholes option pricing model to estimate the fair value of stock option awards.

The table below presents the weighted-average fair value on the date of grant of RSUs and stock options awarded under our various plans and the related weighted-average valuation assumptions.

Year ended December 31	2018				2017				2016
RSUs fair value	$	35.56			$	37.77			$	30.02
Stock options fair value	$	7.14			$	7.01			$	5.78
Stock Option Valuation Assumptions:
Dividend yield	2.1		%		1.7		%		1.8		%
Expected volatility	22.0		%		20.1		%		23.0		%
Risk-free interest rate	2.7		%		2.2		%		1.5		%
Expected option life (in years)	6.0				6.1				6.1

	100	Comcast 2018 Annual Report on Form 10-K

Comcast Corporation

As of December 31, 2018, we had unrecognized pretax compensation expense of $1.1 billion related to nonvested RSUs and unrecognized pretax compensation expense of $437 million related to nonvested stock options that will be recognized over a weighted-average period of approximately 1.6 years and 1.7 years, respectively. In 2018 and 2017, we recognized $75 million and $297 million, respectively, as a reduction to income tax expense as a result of excess tax benefits associated with our share-based compensation plans. In 2016, under prior accounting guidance, we recorded an increase to additional paid-in capital of $233 million as a result of excess tax benefits associated with our share-based compensation plans.

Note 16: Supplemental Financial Information

Cash Payments for Interest and Income Taxes
Year ended December 31 (in millions)	2018			2017			2016
Interest	$	2,897		$	2,820		$	2,565
Income taxes	$	2,355		$	4,057		$	3,693

Noncash Investing and Financing Activities

During 2018:

•	we acquired $2.1 billion of property and equipment and intangible assets that were accrued but unpaid

•	we recorded a liability of $860 million for a quarterly cash dividend of $0.19 per common share paid in January 2019

•	we received noncash contributions from noncontrolling interests totaling $391 million related to Universal Beijing Resort (see Note 8)

During 2017:

•	we acquired $1.2 billion of property and equipment and intangible assets that were accrued but unpaid

•	we recorded a liability of $732 million for a quarterly cash dividend of $0.1575 per common share paid in January 2018

•	we completed a senior notes exchange in the fourth quarter of 2017 in which we issued $5.5 billion aggregate principal amount of new senior notes in exchange for $3.9 billion aggregate principal amount of certain series of outstanding senior notes that were issued by us and NBCUniversal

During 2016:

•	we acquired $1.3 billion of property and equipment and intangible assets that were accrued but unpaid

•	we recorded a liability of $653 million for a quarterly cash dividend of $0.1375 per common share paid in January 2017

•	we recorded a liability of $447 million for capital contributions to Atairos that were accrued in December and paid in January 2017 (see Note 10)

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet to the total of the amounts reported in our consolidated statement of cash flows.

December 31 (in millions)	2018			2017
Cash and cash equivalents	$	3,814		$	3,428
Restricted cash included in other current assets	46			60
Restricted cash included in other noncurrent assets, net	49			83
Cash, cash equivalents and restricted cash, end of year	$	3,909		$	3,571

Comcast 2018 Annual Report on Form 10-K	101

Comcast Corporation

Note 17: Commitments and Contingencies

Commitments

NBCUniversal and Sky enter into long-term commitments with third parties in the ordinary course of its business, including commitments to acquire film and television programming, obligations under various creative talent agreements, and various other television-related commitments. Some of NBCUniversal’s employees, including writers, directors, actors, technical and production personnel, and others, as well as some of its on-air and creative talent, are covered by collective bargaining agreements or works councils. As of December 31, 2018, the total number of NBCUniversal employees covered by collective bargaining agreements was 10,000 full-time equivalent employees. Approximately 46% of these full-time equivalent employees were covered by collective bargaining agreements that have expired or are scheduled to expire during 2019.

We, through Comcast Spectacor, have employment agreements with both players and coaches of the Philadelphia Flyers. Certain of these employment agreements, which provide for payments that are guaranteed regardless of employee injury or termination, are covered by disability insurance if certain conditions are met.

The table below summarizes our minimum annual programming and talent commitments and our minimum annual rental commitments under operating leases for office space, equipment and transponder service agreements. Programming and talent commitments include acquired film and television programming, including broadcast rights to sporting events, such as the Olympics, and other programming commitments, as well as various contracts with creative talent.

As of December 31, 2018 (in millions)	Programming and Talent Commitments			Operating Leases
2019	$	11,741		$	759
2020	$	10,468		$	709
2021	$	8,865		$	616
2022	$	5,193		$	480
2023	$	3,060		$	414
Thereafter	$	17,142		$	2,285

The table below presents our rental expense charged to operations.

Year ended December 31 (in millions)	2018			2017			2016
Rental expense	$	779		$	839		$	744

Contractual Obligation

We are party to a contractual obligation that involves an interest held by a third party in the revenue of certain theme parks. The arrangement provides the counterparty with the right to periodic payments associated with current period revenue which are recorded as an operating expense, and beginning in June 2017, the option to require NBCUniversal to purchase the interest for cash in an amount based on a contractual formula. The contractual formula is based on an average of specified historical theme park revenue at the time of exercise, which amount could be significantly higher than our carrying value. As of December 31, 2018, our carrying value was $1.1 billion, and the value of the contractual obligation was $1.6 billion based on inputs to the contractual formula as of that date.

Redeemable Subsidiary Preferred Stock

NBCUniversal Enterprise is a holding company that we control and consolidate whose principal assets are its interests in NBCUniversal Holdings. The holders of the Series A cumulative preferred stock of NBCUniversal Enterprise have the right to cause NBCUniversal Enterprise to redeem their shares at a price equal to the $725 million aggregate liquidation preference plus accrued but unpaid dividends for a 30 day period beginning on March 19, 2020 and thereafter on every third anniversary of such date (each such date, a “put date”). The NBCUniversal Enterprise preferred stock pays dividends at a fixed rate of 5.25% per year. Shares of preferred stock can be called for redemption by NBCUniversal Enterprise at a price equal to the liquidation preference plus accrued but unpaid dividends one year following the put date applicable to such shares. Because certain of these redemption provisions are outside of our control, the NBCUniversal Enterprise preferred stock is presented outside of equity under the caption “redeemable noncontrolling interests and redeemable subsidiary preferred stock” in our consolidated balance sheet. Its initial value was based on the liquidation preference of the preferred stock and is adjusted for accrued but unpaid dividends. As of December 31, 2018 and 2017, the fair value of the NBCUniversal Enterprise redeemable subsidiary preferred stock was $741 million and $748 million, respectively. The estimated fair values are based on Level 2 inputs that use pricing models whose inputs are derived

	102	Comcast 2018 Annual Report on Form 10-K

Comcast Corporation

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 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. 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.

Note 18: Quarterly Financial Information (Unaudited)

(in millions, except per share data)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total Year
2018
Revenue	$	22,791		$	21,735		$	22,135		$	27,846		$	94,507
Operating income	$	4,645		$	5,014		$	4,836		$	4,514		$	19,009
Net income attributable to Comcast Corporation	$	3,118		$	3,216		$	2,886		$	2,511		$	11,731
Basic earnings per common share attributable to Comcast Corporation shareholders	$	0.67		$	0.70		$	0.63		$	0.55		$	2.56
Diluted earnings per common share attributable to Comcast Corporation shareholders	$	0.66		$	0.69		$	0.62		$	0.55		$	2.53
Dividends declared per common share	$	0.19		$	0.19		$	0.19		$	0.19		$	0.76
2017
Revenue	$	20,587		$	21,286		$	21,081		$	22,075		$	85,029
Operating income	$	4,542		$	4,568		$	4,779		$	4,129		$	18,018
Net income attributable to Comcast Corporation(a)	$	2,573		$	2,521		$	2,642		$	14,999		$	22,735
Basic earnings per common share attributable to Comcast Corporation shareholders	$	0.54		$	0.53		$	0.56		$	3.22		$	4.83
Diluted earnings per common share attributable to Comcast Corporation shareholders	$	0.53		$	0.52		$	0.55		$	3.17		$	4.75
Dividends declared per common share	$	0.1575		$	0.1575		$	0.1575		$	0.1575		$	0.63

Minor differences may exist due to rounding.

(a)	In the fourth quarter of 2017, net income attributable to Comcast Corporation included a $12.7 billion net income tax benefit as a result of the impacts of the 2017 tax reform legislation. See Note 5 for additional information.

Note 19: 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. See Note 7 for additional information on the cross-guarantee structure.

Comcast 2018 Annual Report on Form 10-K	103

Comcast Corporation

Condensed Consolidating Statement of Income

For the Year Ended December 31, 2018 (in millions)	Comcast Parent			Comcast Holdings			CCCL Parent			NBCUniversal Media Parent			Non- Guarantor Subsidiaries			Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Revenue:
Service revenue	$	—		$	—		$	—		$	—		$	94,507		$	—		$	94,507
Management fee revenue	1,197			—			1,175			—			—			(2,372		)	—
Total revenue	1,197			—			1,175			—			94,507			(2,372		)	94,507
Costs and Expenses:
Programming and production	—			—			—			—			29,692			—			29,692
Other operating and administrative	947			—			1,175			1,023			27,321			(2,372		)	28,094
Advertising, marketing and promotion	—			—			—			—			7,036			—			7,036
Depreciation	46			—			—			—			8,235			—			8,281
Amortization	5			—			—			—			2,731			—			2,736
Other operating gains	—			—			—			—			(341		)	—			(341		)
Total costs and expenses	998			—			1,175			1,023			74,674			(2,372		)	75,498
Operating income (loss)	199			—			—			(1,023		)	19,833			—			19,009
Interest expense	(2,644		)	(12		)	(190		)	(430		)	(266		)	—			(3,542		)
Investment and other income (loss), net	13,638			13,604			12,021			6,694			5,054			(51,236		)	(225		)
Income (loss) before income taxes	11,193			13,592			11,831			5,241			24,621			(51,236		)	15,242
Income tax (expense) benefit	538			8			40			(4		)	(3,962		)	—			(3,380		)
Net income (loss)	11,731			13,600			11,871			5,237			20,659			(51,236		)	11,862
Less: Net income attributable to noncontrolling interests and redeemable subsidiary preferred stock	—			—			—			—			131			—			131
Net income (loss) attributable to Comcast Corporation	$	11,731		$	13,600		$	11,871		$	5,237		$	20,528		$	(51,236	)	$	11,731
Comprehensive income (loss) attributable to Comcast Corporation	$	10,908		$	13,623		$	11,873		$	5,279		$	19,553		$	(50,328	)	$	10,908

	104	Comcast 2018 Annual Report on Form 10-K

Comcast Corporation

Condensed Consolidating Statement of Income

For the Year Ended December 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	$	—		$	—		$	—		$	—		$	85,029		$	—		$	85,029
Management fee revenue	1,128			—			1,109			—			—			(2,237		)	—
Total revenue	1,128			—			1,109			—			85,029			(2,237		)	85,029
Costs and Expenses:
Programming and production	—			—			—			—			25,355			—			25,355
Other operating and administrative	766			—			1,109			1,044			24,767			(2,237		)	25,449
Advertising, marketing and promotion	—			—			—			—			6,519			—			6,519
Depreciation	31			—			—			—			7,883			—			7,914
Amortization	6			—			—			—			2,210			—			2,216
Other operating gains	—			—			—			—			(442		)	—			(442		)
Total costs and expenses	803			—			1,109			1,044			66,292			(2,237		)	67,011
Operating income (loss)	325			—			—			(1,044		)	18,737			—			18,018
Interest expense	(2,172		)	(12		)	(207		)	(456		)	(239		)	—			(3,086		)
Investment and other income (loss), net	24,076			21,767			19,610			6,584			5,545			(77,161		)	421
Income (loss) before income taxes	22,229			21,755			19,403			5,084			24,043			(77,161		)	15,353
Income tax (expense) benefit	506			156			71			(4		)	6,840			—			7,569
Net income (loss)	22,735			21,911			19,474			5,080			30,883			(77,161		)	22,922
Less: Net income loss attributable to noncontrolling interests and redeemable subsidiary preferred stock	—			—			—			—			187			—			187
Net income (loss) attributable to Comcast Corporation	$	22,735		$	21,911		$	19,474		$	5,080		$	30,696		$	(77,161	)	$	22,735
Comprehensive income (loss) attributable to Comcast Corporation	$	22,822		$	21,909		$	19,477		$	5,054		$	30,558		$	(76,998	)	$	22,822

Comcast 2018 Annual Report on Form 10-K	105

Comcast Corporation

Condensed Consolidating Statement of Income

For the Year Ended December 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	$	—		$	—		$	—		$	—		$	80,736		$	—		$	80,736
Management fee revenue	1,067			—			1,049			—			—			(2,116		)	—
Total revenue	1,067			—			1,049			—			80,736			(2,116		)	80,736
Costs and Expenses:
Programming and production	—			—			—			—			24,348			—			24,348
Other operating and administrative	813			—			1,049			932			23,162			(2,116		)	23,840
Advertising, marketing and promotion	—			—			—			—			6,291			—			6,291
Depreciation	28			—			—			—			7,436			—			7,464
Amortization	6			—			—			—			1,956			—			1,962
Other operating gains	—			—			—			—			—			—			—
Total costs and expenses	847			—			1,049			932			63,193			(2,116		)	63,905
Operating income (loss)	220			—			—			(932		)	17,543			—			16,831
Interest expense	(1,941		)	(12		)	(239		)	(456		)	(294		)	—			(2,942		)
Investment and other income (loss), net	9,799			9,289			8,703			5,572			4,515			(37,441		)	437
Income (loss) before income taxes	8,078			9,277			8,464			4,184			21,764			(37,441		)	14,326
Income tax (expense) benefit	600			6			84			(13		)	(5,975		)	—			(5,298		)
Net income (loss)	8,678			9,283			8,548			4,171			15,789			(37,441		)	9,028
Less: Net income attributable to noncontrolling interests and redeemable subsidiary preferred stock	—			—			—			—			350			—			350
Net income (loss) attributable to Comcast Corporation	$	8,678		$	9,283		$	8,548		$	4,171		$	15,439		$	(37,441	)	$	8,678
Comprehensive income (loss) attributable to Comcast Corporation	$	8,950		$	9,325		$	8,554		$	4,248		$	15,529		$	(37,656	)	$	8,950

	106	Comcast 2018 Annual Report on Form 10-K

Comcast Corporation

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2018 (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	$	(2,245	)	$	126		$	(112	)	$	(1,430	)	$	27,958		$	—		$	24,297
Investing Activities:
Net transactions with affiliates	(26,179		)	(575		)	112			1,336			25,306			—			—
Capital expenditures	(27		)	—			—			—			(9,747		)	—			(9,774		)
Cash paid for intangible assets	(4		)	—			—			—			(1,931		)	—			(1,935		)
Acquisitions and construction of real estate properties	(105		)	—			—			—			(38		)	—			(143		)
Construction of Universal Beijing Resort	—			—			—			—			(460		)	—			(460		)
Acquisitions, net of cash acquired	—			—			—			—			(38,219		)	—			(38,219		)
Proceeds from sales of businesses and investments	—			—			—			68			73			—			141
Purchases of investments	(126		)	—			—			(50		)	(1,081		)	—			(1,257		)
Deposits	—			—			—			—			—			—			—
Other	148			449			—			—			196			—			793
Net cash provided by (used in) investing activities	(26,293		)	(126		)	112			1,354			(25,901		)	—			(50,854		)
Financing Activities:
Proceeds from (repayments of) short-term borrowings, net	(902		)	—			—			—			1,281			—			379
Proceeds from borrowings	44,113			—			—			—			668			—			44,781
Repurchases and repayments of debt	(5,737		)	—			—			(4		)	(3,057		)	—			(8,798		)
Repurchases of common stock under repurchase program and employee plans	(5,320		)	—			—			—			—			—			(5,320		)
Dividends paid	(3,352		)	—			—			—			—			—			(3,352		)
Purchase of Universal Studios Japan noncontrolling interests	—			—			—			—			—			—			—
Issuances of common stock	—			—			—			—			—			—			—
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock	—			—			—			—			(277		)	—			(277		)
Other	(201		)	—			—			—			(72		)	—			(273		)
Net cash provided by (used in) financing activities	28,601			—			—			(4		)	(1,457		)	—			27,140
Impact of foreign currency on cash, cash equivalents and restricted cash	(63		)	—			—			—			(182		)	—			(245		)
Increase (decrease) in cash and cash equivalents and restricted cash	—			—			—			(80		)	418			—			338
Cash, cash equivalents and restricted cash, beginning of year	—			—			—			496			3,075			—			3,571
Cash, cash equivalents and restricted cash, end of year	$	—		$	—		$	—		$	416		$	3,493		$	—		$	3,909

Comcast 2018 Annual Report on Form 10-K	107

Comcast Corporation

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 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	$	151		$	15		$	(147	)	$	(1,439	)	$	22,681		$	—		$	21,261
Investing Activities:
Net transactions with affiliates	5,578			(5		)	757			1,447			(7,777		)	—			—
Capital expenditures	(12		)	—			—			—			(9,538		)	—			(9,550		)
Cash paid for intangible assets	(4		)	—			—			—			(1,601		)	—			(1,605		)
Acquisitions and construction of real estate properties	(267		)	—			—			—			(151		)	—			(418		)
Construction of Universal Beijing Resort	—			—			—			—			(71		)	—			(71		)
Acquisitions, net of cash acquired	—			—			—			—			(532		)	—			(532		)
Proceeds from sales of businesses and investments	—			—			—			14			136			—			150
Purchases of investments	(70		)	(10		)	(60		)	(62		)	(2,090		)	—			(2,292		)
Deposits	—			—			—			—			—			—			—
Other	101			—			—			58			626			—			785
Net cash provided by (used in) investing activities	5,326			(15		)	697			1,457			(20,998		)	—			(13,533		)
Financing Activities:
Proceeds from (repayments of) short-term borrowings, net	(837		)	—			—			—			(1,068		)	—			(1,905		)
Proceeds from borrowings	5,997			—			—			—			5,469			—			11,466
Repurchases and repayments of debt	(2,288		)	—			(550		)	(4		)	(3,522		)	—			(6,364		)
Repurchases of common stock under repurchase program and employee plans	(5,435		)	—			—			—			—			—			(5,435		)
Dividends paid	(2,883		)	—			—			—			—			—			(2,883		)
Purchase of Universal Studios Japan noncontrolling interests	—			—			—			—			(2,299		)	—			(2,299		)
Issuances of common stock	—			—			—			—			—			—			—
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock	—			—			—			—			(252		)	—			(252		)
Other	(31		)	—			—			—			131			—			100
Net cash provided by (used in) financing activities	(5,477		)	—			(550		)	(4		)	(1,541		)	—			(7,572		)
Increase (decrease) in cash and cash equivalents and restricted cash	—			—			—			14			142			—			156
Cash, cash equivalents and restricted cash, beginning of year	—			—			—			482			2,933			—			3,415
Cash, cash equivalents and restricted cash, end of year	$	—		$	—		$	—		$	496		$	3,075		$	—		$	3,571

	108	Comcast 2018 Annual Report on Form 10-K

Comcast Corporation

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 31, 2016 (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	$	349		$	(336	)	$	(100	)	$	(1,453	)	$	21,231		$	—		$	19,691
Investing Activities:
Net transactions with affiliates	(1,956		)	336			100			2,642			(1,122		)	—			—
Capital expenditures	(13		)	—			—			—			(9,122		)	—			(9,135		)
Cash paid for intangible assets	(9		)	—			—			—			(1,543		)	—			(1,552		)
Acquisitions and construction of real estate properties	(35		)	—			—			—			(393		)	—			(428		)
Construction of Universal Beijing Resort	—			—			—			—			(22		)	—			(22		)
Acquisitions, net of cash acquired	—			—			—			—			(3,929		)	—			(3,929		)
Proceeds from sales of businesses and investments	—			—			—			104			114			—			218
Purchases of investments	(40		)	—			—			(210		)	(1,447		)	—			(1,697		)
Deposits	—			—			—			—			(1,749		)	—			(1,749		)
Other	(108		)	—			—			(35		)	172			—			29
Net cash provided by (used in) investing activities	(2,161		)	336			100			2,501			(19,041		)	—			(18,265		)
Financing Activities:
Proceeds from (repayments of) short-term borrowings, net	1,339			—			—			—			451			—			1,790
Proceeds from borrowings	9,231			—			—			—			—			—			9,231
Repurchases and repayments of debt	(750		)	—			—			(1,005		)	(1,297		)	—			(3,052		)
Repurchases of common stock under repurchase program and employee plans	(5,352		)	—			—			—			—			—			(5,352		)
Dividends paid	(2,601		)	—			—			—			—			—			(2,601		)
Issuances of common stock	23			—			—			—			—			—			23
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock	—			—			—			—			(253		)	—			(253		)
Other	(78		)	—			—			25			(167		)	—			(220		)
Net cash provided by (used in) financing activities	1,812			—			—			(980		)	(1,266		)	—			(434		)
Increase (decrease) in cash and cash equivalents and restricted cash	—			—			—			68			924			—			992
Cash, cash equivalents and restricted cash, beginning of year	—			—			—			414			2,009			—			2,423
Cash, cash equivalents and restricted cash, end of year	$	—		$	—		$	—		$	482		$	2,933		$	—		$	3,415

Comcast 2018 Annual Report on Form 10-K	109

Comcast Corporation

Condensed Consolidating Balance Sheet

December 31, 2018 (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	$	—		$	—		$	—		$	416		$	3,398		$	—		$	3,814
Receivables, net	—			—			—			—			11,104			—			11,104
Programming rights	—			—			—			—			3,746			—			3,746
Other current assets	66			20			—			28			3,070			—			3,184
Total current assets	66			20			—			444			21,318			—			21,848
Film and television costs	—			—			—			—			7,837			—			7,837
Investments	270			11			143			790			6,669			—			7,883
Investments in and amounts due from subsidiaries eliminated upon consolidation	157,264			147,028			130,214			53,853			97,872			(586,231		)	—
Property and equipment, net	670			—			—			—			43,767			—			44,437
Franchise rights	—			—			—			—			59,365			—			59,365
Goodwill	—			—			—			—			66,154			—			66,154
Other intangible assets, net	11			—			—			—			38,347			—			38,358
Other noncurrent assets, net	1,057			208			—			85			4,910			(458		)	5,802
Total assets	$	159,338		$	147,267		$	130,357		$	55,172		$	346,239		$	(586,689	)	$	251,684
Liabilities and Equity
Accounts payable and accrued expenses related to trade creditors	$	2		$	—		$	—		$	—		$	8,492		$	—		$	8,494
Accrued participations and residuals	—			—			—			—			1,808			—			1,808
Deferred revenue	—			—			—			—			2,182			—			2,182
Accrued expenses and other current liabilities	2,357			150			360			282			7,572			—			10,721
Current portion of long-term debt	699			—			—			4			3,695			—			4,398
Total current liabilities	3,058			150			360			286			23,749			—			27,603
Long-term debt, less current portion	81,661			146			2,100			7,748			15,690			—			107,345
Deferred income taxes	—			314			—			65			27,734			(524		)	27,589
Other noncurrent liabilities	3,006			—			—			1,201			11,056			66			15,329
Redeemable noncontrolling interests and redeemable subsidiary preferred stock	—			—			—			—			1,316			—			1,316
Equity:
Common stock	54			—			—			—			—			—			54
Other shareholders’ equity	71,559			146,657			127,897			45,872			265,805			(586,231		)	71,559
Total Comcast Corporation shareholders’ equity	71,613			146,657			127,897			45,872			265,805			(586,231		)	71,613
Noncontrolling interests	—			—			—			—			889			—			889
Total equity	71,613			146,657			127,897			45,872			266,694			(586,231		)	72,502
Total liabilities and equity	$	159,338		$	147,267		$	130,357		$	55,172		$	346,239		$	(586,689	)	$	251,684

	110	Comcast 2018 Annual Report on Form 10-K

Comcast Corporation

Condensed Consolidating Balance Sheet

December 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	$	—		$	—		$	—		$	496		$	2,932		$	—		$	3,428
Receivables, net	—			—			—			—			8,834			—			8,834
Programming rights	—			—			—			—			1,613			—			1,613
Other current assets	60			—			7			25			2,376			—			2,468
Total current assets	60			—			7			521			15,755			—			16,343
Film and television costs	—			—			—			—			7,087			—			7,087
Investments	146			21			108			693			5,963			—			6,931
Investments in and amounts due from subsidiaries eliminated upon consolidation	117,164			142,519			139,528			50,102			113,332			(562,645		)	—
Property and equipment, net	551			—			—			—			37,919			—			38,470
Franchise rights	—			—			—			—			59,364			—			59,364
Goodwill	—			—			—			—			36,780			—			36,780
Other intangible assets, net	12			—			—			—			18,121			—			18,133
Other noncurrent assets, net	435			708			—			88			3,437			(314		)	4,354
Total assets	$	118,368		$	143,248		$	139,643		$	51,404		$	297,758		$	(562,959	)	$	187,462
Liabilities and Equity
Accounts payable and accrued expenses related to trade creditors	$	16		$	—		$	—		$	—		$	6,892		$	—		$	6,908
Accrued participations and residuals	—			—			—			—			1,644			—			1,644
Deferred revenue	—			—			—			—			1,687			—			1,687
Accrued expenses and other current liabilities	1,888			92			333			326			3,981			—			6,620
Current portion of long-term debt	2,810			—			—			4			2,320			—			5,134
Total current liabilities	4,714			92			333			330			16,524			—			21,993
Long-term debt, less current portion	42,428			140			2,100			7,751			7,003			—			59,422
Deferred income taxes	—			285			—			67			24,250			(343		)	24,259
Other noncurrent liabilities	2,610			—			—			1,128			7,205			29			10,972
Redeemable noncontrolling interests and redeemable subsidiary preferred stock	—			—			—			—			1,357			—			1,357
Equity:
Common stock	55			—			—			—			—			—			55
Other shareholders’ equity	68,561			142,731			137,210			42,128			240,576			(562,645		)	68,561
Total Comcast Corporation shareholders’ equity	68,616			142,731			137,210			42,128			240,576			(562,645		)	68,616
Noncontrolling interests	—			—			—			—			843			—			843
Total equity	68,616			142,731			137,210			42,128			241,419			(562,645		)	69,459
Total liabilities and equity	$	118,368		$	143,248		$	139,643		$	51,404		$	297,758		$	(562,959	)	$	187,462

Comcast 2018 Annual Report on Form 10-K	111