filings.toolsItem 8. Comcast Corporation Financial Statements and Supplementary Data
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Item 8. Comcast Corporation Financial Statements and Supplementary Data
| Comcast 2024 Annual Report on Form 10-K | 56 |
Report of Management
Management’s Report on Financial Statements
Our management is responsible for the preparation, integrity and fair presentation of information in the 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 consolidated financial statements and other financial information included in this report fairly present, in all material respects, the financial condition, results of operations and cash flows as of and for the periods presented in this report. The 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 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:
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Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of our assets.
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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.
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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 the system of internal control over financial reporting was effective as of December 31, 2024. The effectiveness of internal control over financial reporting 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 the 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 audited consolidated financial statements be included in this Form 10-K.
| /s/ BRIAN L. ROBERTS | /s/ JASON S. ARMSTRONG | /s/ DANIEL C. MURDOCK | ||||||||||||
| Brian L. Roberts | Jason S. Armstrong | Daniel C. Murdock | ||||||||||||
| Chairman and Chief Executive Officer | Chief Financial Officer | Executive Vice President, Chief Accounting Officer and Controller |
| 57 | Comcast 2024 Annual Report on Form 10-K |
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of
Comcast Corporation
Opinions on the 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, 2024 and 2023, 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, 2024, 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, 2024, 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, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, 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, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
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 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.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Revenue - Refer to Note 3 to the financial statements.
Critical Audit Matter Description
The Company’s Residential Connectivity & Platforms segment generates revenue from customers that subscribe to broadband and wireless connectivity services, video services and wireline voice services. These services are offered to customers individually and as bundled services at a discounted rate.
| Comcast 2024 Annual Report on Form 10-K | 58 |
Report of Independent Registered Public Accounting Firm
The processing and recording of revenue are reliant upon multiple information technology (IT) systems.
Given the volume of data and the number of IT systems, subjective auditor judgment was involved in evaluating the sufficiency of audit evidence over revenue recognition for bundled services within the Residential Connectivity & Platforms segment, including the involvement of professionals with expertise in IT to identify, test, and evaluate the Company’s systems and automated controls used in processing revenue transactions.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the judgments necessary to determine the appropriate recognition and processing of revenue included the following, among others:
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We tested the effectiveness of controls in the revenue recognition processes, including those in place to (a) establish revenue recognition accounting policies for bundled services, (b) record revenue, including any related discounts, in accordance with the established accounting policies, and (c) reconcile the various systems to the Company’s general ledger.
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With the assistance of our IT specialists, we:
◦Identified the relevant systems and databases used to process revenue transactions and tested the relevant IT controls over each of those systems and databases.
◦Performed testing of automated business controls over revenue from domestic residential and business customers.
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We tested the allocation of revenue for bundled services by selecting a sample of subscriber invoices, evaluating management’s determination of the transaction price and the distinct performance obligations, and recalculating the allocation of transaction price to each performance obligation based on the respective stand-alone selling prices.
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We tested the accuracy and completeness of the subscriber information used in our audit procedures by selecting a sample of the subscribers, and for those selections agreeing the selected subscriber information to supporting documentation.
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We developed expectations of revenue at a disaggregated level based on historical transaction prices, changes in stand-alone selling prices and current year volumes. We also developed an expectation of aggregate domestic residential revenue from subscribers based on cash received during the year. We compared those estimates to revenue recognized by the Company.
Goodwill - Refer to Note 9 to the financial statements.
Critical Audit Matter Description
The Company’s evaluation of goodwill for impairment is performed at the reporting unit level. To determine its reporting units, the Company evaluates the components one level below the segment level and aggregates the components if they have similar economic characteristics. The Company performed a quantitative assessment of goodwill for the Media reporting unit, which involved a comparison of the fair value of the Media reporting unit to its carrying value.
The Company used the discounted cash flow model to estimate fair value, which requires management to make significant judgments related to discount rates and forecasts of expected cash flows. Changes in these assumptions could have a significant impact on either the fair value, the amount of any goodwill impairment charge, or both.
The goodwill balance was $58 billion as of December 31, 2024, of which $20 billion was allocated to the Media reporting unit. Based on the quantitative assessment, the estimated fair value of the Media reporting unit exceeded its carrying value and no impairment was recognized.
We identified the goodwill impairment assessment of the Media reporting unit as a critical audit matter because of the significant judgments made by management to estimate the fair value of the Media reporting unit. This required a high degree of auditor judgment and an increased extent of effort, when performing audit procedures to evaluate management’s conclusion related to the aggregation of components into a single reporting unit and the reasonableness of management’s estimates and assumptions related to the selection of the discount rate, revenue growth rate and Adjusted EBITDA margin included in future expected cash flows for the Media reporting unit.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures to evaluate the determination of the reporting unit as well as the discount rate, revenue growth rate and Adjusted EBITDA margin included in future expected cash flows used by management to estimate the fair value of the Media reporting unit included the following, among others:
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We tested the effectiveness of controls over management’s goodwill impairment evaluation, including those over (a) the accounting policies regarding identification of the unit of account for goodwill and (b) the determination of the fair value of Media, such as controls related to management’s selection of the discount rate and forecasts of future expected cash flows.
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With the assistance of our fair value specialists, we evaluated the reasonableness of the (1) valuation methodology and (2) discount rate, including testing the source information underlying the determination of the discount rate, testing the mathematical accuracy of the calculation, and developing a range of independent estimates and comparing those to the discount rate selected by management.
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We evaluated management’s ability to accurately forecast future revenue and Adjusted EBITDA margin by comparing prior year forecasts to actual results in the respective years.
| 59 | Comcast 2024 Annual Report on Form 10-K |
Report of Independent Registered Public Accounting Firm
- We evaluated the reasonableness of management’s current forecasts of future revenue and Adjusted EBITDA margin by comparing such forecasts to historical results and to forecasted information included in Company press releases as well as in analyst and industry reports of the Company and companies in its peer group.
Income Taxes - Refer to Note 5 to the financial statements.
Critical Audit Matter Description
The Company completed an internal corporate reorganization which resulted in a federal net capital loss of $9.1 billion, which can be carried back three years. Given capital gains recognized in prior federal income tax returns, the Company recognized an income tax benefit and a corresponding refund receivable of $1.9 billion.
We identified the accounting for the tax benefit as a critical audit matter due to the significant judgment required to (1) determine whether the tax position’s technical merits are more-likely-than-not to be sustained and (2) measure the amount of the tax benefit that qualifies for recognition. Auditing the Company’s accounting for this position required a high degree of auditor judgment, specialized knowledge, and involvement of our tax specialists.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the tax benefit associated with the internal corporate reorganization included the following, among others:
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We tested the effectiveness of controls over management’s determination of the tax position and the measurement of the tax benefit.
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With the assistance of our tax specialists, we:
◦Evaluated management’s memoranda and third-party opinions used by management to support its position and the related accounting impacts. We assessed the consistency of management’s position with our interpretation of the relevant laws and regulations.
◦Assessed management’s methods and assumptions used in calculating the capital loss and measuring the tax benefit.
◦Recalculated the tax basis of the entities included in the calculation of the capital loss by comparing the amounts to supporting evidence and evaluating the appropriateness of management’s assumptions used to determine the tax basis.
/s/ Deloitte & Touche LLP
Philadelphia, Pennsylvania
January 31, 2025
We have served as the Company’s auditor since 1963.
| Comcast 2024 Annual Report on Form 10-K | 60 |
Comcast Corporation
Consolidated Statements of Income
| Year ended December 31 (in millions, except per share data) | 2024 | 2023 | 2022 | ||||||||||||||
| Revenue | $ | 123,731 | $ | 121,572 | $ | 121,427 | |||||||||||
| Costs and Expenses: | |||||||||||||||||
| Programming and production | 37,026 | 36,762 | 38,213 | ||||||||||||||
| Marketing and promotion | 8,073 | 7,971 | 8,506 | ||||||||||||||
| Other operating and administrative | 40,533 | 39,190 | 38,263 | ||||||||||||||
| Depreciation | 8,729 | 8,854 | 8,724 | ||||||||||||||
| Amortization | 6,072 | 5,482 | 5,097 | ||||||||||||||
| Goodwill and long-lived asset impairments | — | — | 8,583 | ||||||||||||||
| Total costs and expenses | 100,434 | 98,258 | 107,385 | ||||||||||||||
| Operating income | 23,297 | 23,314 | 14,041 | ||||||||||||||
| Interest expense | (4,134) | (4,087) | (3,896) | ||||||||||||||
| Investment and other income (loss), net | (490) | 1,252 | (861) | ||||||||||||||
| Income before income taxes | 18,673 | 20,478 | 9,284 | ||||||||||||||
| Income tax expense | (2,796) | (5,371) | (4,359) | ||||||||||||||
| Net income | 15,877 | 15,107 | 4,925 | ||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | (315) | (282) | (445) | ||||||||||||||
| Net income attributable to Comcast Corporation | $ | 16,192 | $ | 15,388 | $ | 5,370 | |||||||||||
| Basic earnings per common share attributable to Comcast Corporation shareholders | $ | 4.17 | $ | 3.73 | $ | 1.22 | |||||||||||
| Diluted earnings per common share attributable to Comcast Corporation shareholders | $ | 4.14 | $ | 3.71 | $ | 1.21 | |||||||||||
See accompanying notes to consolidated financial statements.
| 61 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
Consolidated Statements of Comprehensive Income
| Year ended December 31 (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| Net income | $ | 15,877 | $ | 15,107 | $ | 4,925 | |||||||||||
| Other comprehensive income (loss), net of tax (expense) benefit: | |||||||||||||||||
| Currency translation adjustments, net of deferred taxes of $(137), $(29) and $310 | (895) | 1,478 | (4,242) | ||||||||||||||
| Cash flow hedges: | |||||||||||||||||
| Deferred gains (losses), net of deferred taxes of $(4), $8 and $(18) | 57 | 16 | 281 | ||||||||||||||
| Realized (gains) losses reclassified to net income, net of deferred taxes of $(1), $38 and $(3) | (1) | (158) | (192) | ||||||||||||||
| Employee benefit obligations and other, net of deferred taxes of $(9), $(2) and $(11) | 31 | 3 | 33 | ||||||||||||||
| Other comprehensive income (loss) | (807) | 1,338 | (4,120) | ||||||||||||||
| Comprehensive income (loss) | 15,070 | 16,445 | 805 | ||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | (315) | (282) | (445) | ||||||||||||||
| Less: Other comprehensive income (loss) attributable to noncontrolling interests | (17) | (19) | (29) | ||||||||||||||
| Comprehensive income attributable to Comcast Corporation | $ | 15,402 | $ | 16,746 | $ | 1,280 |
See accompanying notes to consolidated financial statements.
| Comcast 2024 Annual Report on Form 10-K | 62 |
Comcast Corporation
Consolidated Statements of Cash Flows
| Year ended December 31 (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| Operating Activities | |||||||||||||||||
| Net income | $ | 15,877 | $ | 15,107 | $ | 4,925 | |||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 14,802 | 14,336 | 13,821 | ||||||||||||||
| Goodwill and long-lived asset impairments | — | — | 8,583 | ||||||||||||||
| Share-based compensation | 1,288 | 1,241 | 1,336 | ||||||||||||||
| Noncash interest expense (income), net | 464 | 316 | 309 | ||||||||||||||
| Net (gain) loss on investment activity and other | 1,088 | (768) | 1,177 | ||||||||||||||
| Deferred income taxes | (902) | (2,739) | (834) | ||||||||||||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | |||||||||||||||||
| Current and noncurrent receivables, net | 136 | (996) | (1,327) | ||||||||||||||
| Film and television costs, net | 290 | (260) | (451) | ||||||||||||||
| Accounts payable and accrued expenses related to trade creditors | (758) | (520) | 497 | ||||||||||||||
| Other operating assets and liabilities | (4,611) | 2,784 | (1,623) | ||||||||||||||
| Net cash provided by operating activities | 27,673 | 28,501 | 26,413 | ||||||||||||||
| Investing Activities | |||||||||||||||||
| Capital expenditures | (12,181) | (12,242) | (10,626) | ||||||||||||||
| Cash paid for intangible assets | (2,949) | (3,298) | (3,141) | ||||||||||||||
| Construction of Universal Beijing Resort | (116) | (137) | (330) | ||||||||||||||
| Proceeds from sales of businesses and investments | 771 | 661 | 1,985 | ||||||||||||||
| Advance on sale of investment | — | 8,610 | — | ||||||||||||||
| Purchases of investments | (1,082) | (1,313) | (2,274) | ||||||||||||||
| Other | (113) | 558 | 246 | ||||||||||||||
| Net cash provided by (used in) investing activities | (15,670) | (7,161) | (14,140) | ||||||||||||||
| Financing Activities | |||||||||||||||||
| Proceeds from (repayments of) short-term borrowings, net | — | (660) | 660 | ||||||||||||||
| Proceeds from borrowings | 6,268 | 6,052 | 2,745 | ||||||||||||||
| Repurchases and repayments of debt | (3,573) | (4,015) | (2,307) | ||||||||||||||
| Repayment of collateralized obligation | — | (5,175) | — | ||||||||||||||
| Repurchases of common stock under repurchase program and employee plans | (9,103) | (11,291) | (13,328) | ||||||||||||||
| Dividends paid | (4,814) | (4,766) | (4,741) | ||||||||||||||
| Other | 339 | 5 | 786 | ||||||||||||||
| Net cash provided by (used in) financing activities | (10,883) | (19,850) | (16,184) | ||||||||||||||
| Impact of foreign currency on cash, cash equivalents and restricted cash | (26) | 9 | (86) | ||||||||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | 1,095 | 1,500 | (3,997) | ||||||||||||||
| Cash, cash equivalents and restricted cash, beginning of year | 6,282 | 4,782 | 8,778 | ||||||||||||||
| Cash, cash equivalents and restricted cash, end of year | $ | 7,377 | $ | 6,282 | $ | 4,782 |
See accompanying notes to consolidated financial statements.
| 63 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
Consolidated Balance Sheets
| December 31 (in millions, except share data) | 2024 | 2023 | |||||||||
| Assets | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 7,322 | $ | 6,215 | |||||||
| Receivables, net | 13,661 | 13,813 | |||||||||
| Other current assets | 5,817 | 3,959 | |||||||||
| Total current assets | 26,801 | 23,987 | |||||||||
| Film and television costs | 12,541 | 12,920 | |||||||||
| Investments | 8,647 | 9,385 | |||||||||
| Property and equipment, net | 62,548 | 59,686 | |||||||||
| Goodwill | 58,209 | 59,268 | |||||||||
| Franchise rights | 59,365 | 59,365 | |||||||||
| Other intangible assets, net | 25,599 | 27,867 | |||||||||
| Other noncurrent assets, net | 12,501 | 12,333 | |||||||||
| Total assets | $ | 266,211 | $ | 264,811 | |||||||
| Liabilities and Equity | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts payable and accrued expenses related to trade creditors | $ | 11,321 | $ | 12,437 | |||||||
| Deferred revenue | 3,507 | 3,242 | |||||||||
| Accrued expenses and other current liabilities | 10,679 | 13,284 | |||||||||
| Current portion of debt | 4,907 | 2,069 | |||||||||
| Advance on sale of investment | 9,167 | 9,167 | |||||||||
| Total current liabilities | 39,581 | 40,198 | |||||||||
| Noncurrent portion of debt | 94,186 | 95,021 | |||||||||
| Deferred income taxes | 25,227 | 26,003 | |||||||||
| Other noncurrent liabilities | 20,942 | 20,122 | |||||||||
| Commitments and contingencies | |||||||||||
| Redeemable noncontrolling interests | 237 | 241 | |||||||||
| 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, 4,651,093,045 and 4,842,108,959; outstanding, 3,778,302,017 and 3,969,317,931 | 47 | 48 | |||||||||
| Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375 | — | — | |||||||||
| Additional paid-in capital | 38,102 | 38,533 | |||||||||
| Retained earnings | 56,972 | 52,892 | |||||||||
| Treasury stock, 872,791,028 Class A common shares | (7,517) | (7,517) | |||||||||
| Accumulated other comprehensive income (loss) | (2,043) | (1,253) | |||||||||
| Total Comcast Corporation shareholders’ equity | 85,560 | 82,703 | |||||||||
| Noncontrolling interests | 477 | 523 | |||||||||
| Total equity | 86,038 | 83,226 | |||||||||
| Total liabilities and equity | $ | 266,211 | $ | 264,811 |
See accompanying notes to consolidated financial statements.
| Comcast 2024 Annual Report on Form 10-K | 64 |
Comcast Corporation
Consolidated Statements of Changes in Equity
| (in millions, except per share data) | 2024 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||
| Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||
| Balance, beginning of year | $ | 241 | $ | 411 | $ | 519 | ||||||||||||||||||||||||||||||||
| Contributions from (distributions to) noncontrolling interests, net | (13) | (24) | (77) | |||||||||||||||||||||||||||||||||||
| Other | — | (171) | (80) | |||||||||||||||||||||||||||||||||||
| Net income (loss) | 9 | 25 | 49 | |||||||||||||||||||||||||||||||||||
| Balance, end of year | $ | 237 | $ | 241 | $ | 411 | ||||||||||||||||||||||||||||||||
| Class A Common Stock | ||||||||||||||||||||||||||||||||||||||
| Balance, beginning of year | $ | 48 | $ | 51 | $ | 54 | ||||||||||||||||||||||||||||||||
| Repurchases of common stock under repurchase program and employee plans | (2) | (2) | (3) | |||||||||||||||||||||||||||||||||||
| Balance, end of year | $ | 47 | $ | 48 | $ | 51 | ||||||||||||||||||||||||||||||||
| Class B Common Stock | ||||||||||||||||||||||||||||||||||||||
| Balance, beginning and end of year | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||
| Additional Paid-In Capital | ||||||||||||||||||||||||||||||||||||||
| Balance, beginning of year | $ | 38,533 | $ | 39,412 | $ | 40,173 | ||||||||||||||||||||||||||||||||
| Share-based compensation | 1,169 | 1,063 | 1,055 | |||||||||||||||||||||||||||||||||||
| Repurchases of common stock under repurchase program and employee plans | (1,841) | (2,086) | (2,431) | |||||||||||||||||||||||||||||||||||
| Issuances of common stock under employee plans | 240 | 272 | 278 | |||||||||||||||||||||||||||||||||||
| Other | 2 | (127) | 337 | |||||||||||||||||||||||||||||||||||
| Balance, end of year | $ | 38,102 | $ | 38,533 | $ | 39,412 | ||||||||||||||||||||||||||||||||
| Retained Earnings | ||||||||||||||||||||||||||||||||||||||
| Balance, beginning of year | $ | 52,892 | $ | 51,609 | $ | 61,902 | ||||||||||||||||||||||||||||||||
| Repurchases of common stock under repurchase program and employee plans | (7,251) | (9,309) | (10,897) | |||||||||||||||||||||||||||||||||||
| Dividends declared | (4,862) | (4,795) | (4,757) | |||||||||||||||||||||||||||||||||||
| Other | — | (1) | (10) | |||||||||||||||||||||||||||||||||||
| Net income | 16,192 | 15,388 | 5,370 | |||||||||||||||||||||||||||||||||||
| Balance, end of year | $ | 56,972 | $ | 52,892 | $ | 51,609 | ||||||||||||||||||||||||||||||||
| Treasury Stock at Cost | ||||||||||||||||||||||||||||||||||||||
| Balance, beginning and end of year | $ | (7,517) | $ | (7,517) | $ | (7,517) | ||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||
| Balance, beginning of year | $ | (1,253) | $ | (2,611) | $ | 1,480 | ||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (790) | 1,358 | (4,091) | |||||||||||||||||||||||||||||||||||
| Balance, end of year | $ | (2,043) | $ | (1,253) | $ | (2,611) | ||||||||||||||||||||||||||||||||
| Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||
| Balance, beginning of year | $ | 523 | $ | 684 | $ | 1,398 | ||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (17) | (19) | (29) | |||||||||||||||||||||||||||||||||||
| Contributions from (distributions to) noncontrolling interests, net | 295 | 166 | 89 | |||||||||||||||||||||||||||||||||||
| Other | — | — | (280) | |||||||||||||||||||||||||||||||||||
| Net income (loss) | (324) | (307) | (495) | |||||||||||||||||||||||||||||||||||
| Balance, end of year | $ | 477 | $ | 523 | $ | 684 | ||||||||||||||||||||||||||||||||
| Total equity | $ | 86,038 | $ | 83,226 | $ | 81,627 | ||||||||||||||||||||||||||||||||
| Cash dividends declared per common share | $ | 1.24 | $ | 1.16 | $ | 1.08 |
See accompanying notes to consolidated financial statements.
| 65 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
Notes to Consolidated Financial Statements
| Note 1: Summary of Significant Accounting Policies |
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, including Universal Beijing Resort (see Note 7).
We translate assets and liabilities of our foreign operations where the functional currency is the local currency into U.S. dollars at the exchange rate as of the balance sheet date and translate revenue and expenses using average periodic exchange rates. The related translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in our consolidated balance sheets. Any foreign currency transaction gains or losses are included in our consolidated statements of income in investment and other income (loss), net. For disclosures containing future amounts where the functional currency is the local currency, we translate the amounts into U.S. dollars at the exchange rates as of the balance sheet date.
In November 2024, we announced our intention to create SpinCo, a new independent publicly traded company comprised of select domestic cable television networks along with complementary digital assets through a tax-free spin-off. We are targeting to complete the Spin-off by the end of 2025, subject to the satisfaction of customary conditions, including obtaining final approval from our Board of Directors, satisfactory completion of SpinCo financings, receipt of tax opinions and receipt of any regulatory approvals. There can be no assurance that a separation transaction will occur, or, if one does, of its terms or timing. The consolidated financial statements and related notes do not reflect the proposed Spin-off.
Reclassifications
Our current liability for accrued participations and residuals is separately disclosed in Note 4 in the current year and is included within the “accrued expenses and other current liabilities” caption in our consolidated balance sheet for all periods presented. Previously these amounts were presented in a separate caption in our consolidated balance sheet.
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. The following accounting policies are specific to the industries in which we operate:
-
capitalization and amortization of film and television costs (see Note 4)
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costs for connecting customers to our HFC network (see Note 8)
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.
Advertising Expenses
Advertising costs are expensed as incurred.
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. The levels of the hierarchy are described below.
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Level 1: Values are determined using quoted market prices for identical financial instruments in an active market.
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Level 2: Values are determined using quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.
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Level 3: Values are determined using 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 this three-tier fair value hierarchy to measure the fair value of certain financial instruments on a recurring basis, such as for investments (see Note 7); on a non-recurring basis, such as for acquisitions and impairment testing (see Note 9); and for disclosure purposes, such as for debt (see Note 6). 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.
| Comcast 2024 Annual Report on Form 10-K | 66 |
Comcast Corporation
Recent Accounting Pronouncements
Income Tax Disclosures
In December 2023, the Financial Accounting Standards Board (“FASB”) issued updated accounting guidance related to income tax disclosures. The updated accounting guidance, among other things, requires additional disclosure primarily related to the income tax rate reconciliation and income taxes paid. We will adopt the updated accounting guidance in our Annual Report on Form 10-K for the year ending December 31, 2025.
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued updated accounting guidance related to disclosures about certain costs and expenses. The updated accounting guidance, among other things, requires quantitative disclosures for employee compensation, selling expenses and purchases of inventory. The updated guidance is effective beginning in our Annual Report on Form 10-K for the year ending December 31, 2027.
| Note 2: Segment Information |
We are a global media and technology company with five segments: Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios and Theme Parks. Our segments align to our primary business operations and how our Chairman and Chief Executive Officer, the chief operating decision maker, reviews our operating results. See Note 3 for a description of the various products and services within each segment.
Our segments generally report transactions with one another as if they were stand-alone businesses in accordance with GAAP, and these transactions are eliminated in consolidation. When multiple segments enter into transactions to provide products and services to third parties, revenue is generally allocated to our segments based on relative value. Transactions between our segments generally include intercompany profit consistent with third-party transactions. The Residential Connectivity & Platforms and the Business Services Connectivity segments use certain shared infrastructure, including our network in the United States, and each segment is presented with its direct costs and an allocation of shared costs, as well as revenue from its customers.
Our financial data by segment is presented in the tables below. We do not present asset information for our segments as this information is not used to allocate resources.
| 67 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||||||||
| (in millions) | Residential Connectivity & Platforms | Business Services Connectivity | Media | Studios | Theme Parks | Total | ||||||||||||||||||||||||||||||||
| Revenue from external customers | $ | 71,401 | $ | 9,678 | $ | 23,463 | $ | 7,832 | $ | 8,615 | $ | 120,990 | ||||||||||||||||||||||||||
| Intersegment revenue(a) | 173 | 23 | 4,685 | 3,259 | 1 | 8,142 | ||||||||||||||||||||||||||||||||
| 71,574 | 9,701 | 28,148 | 11,092 | 8,617 | 129,132 | |||||||||||||||||||||||||||||||||
| Reconciliation of Revenue | ||||||||||||||||||||||||||||||||||||||
| Other revenue(b) | 2,982 | |||||||||||||||||||||||||||||||||||||
| Eliminations(a) | (8,383) | |||||||||||||||||||||||||||||||||||||
| Total consolidated revenue | $ | 123,731 | ||||||||||||||||||||||||||||||||||||
| Less segment expenses:(c) | ||||||||||||||||||||||||||||||||||||||
| Programming and production | $ | 16,881 | $ | 18,968 | $ | 7,257 | ||||||||||||||||||||||||||||||||
| Marketing and promotion | 1,473 | 1,483 | ||||||||||||||||||||||||||||||||||||
| Other(d) | 27,355 | 4,201 | 4,577 | 947 | 5,668 | |||||||||||||||||||||||||||||||||
| Segment Adjusted EBITDA(e) | $ | 27,338 | $ | 5,500 | $ | 3,130 | $ | 1,404 | $ | 2,949 | $ | 40,322 | ||||||||||||||||||||||||||
| Reconciliation of total segment Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||
| Media, Studios and Theme Parks headquarters and other(f) | (831) | |||||||||||||||||||||||||||||||||||||
| Corporate and other(b)(e) | (1,346) | |||||||||||||||||||||||||||||||||||||
| Eliminations | (47) | |||||||||||||||||||||||||||||||||||||
| Depreciation | (8,729) | |||||||||||||||||||||||||||||||||||||
| Amortization | (6,072) | |||||||||||||||||||||||||||||||||||||
| Interest expense | (4,134) | |||||||||||||||||||||||||||||||||||||
| Investment and other income (loss), net | (490) | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 18,673 |
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
| (in millions) | Residential Connectivity & Platforms | Business Services Connectivity | Media | Studios | Theme Parks | Total | ||||||||||||||||||||||||||||||||
| Revenue from external customers | $ | 71,739 | $ | 9,233 | $ | 20,734 | $ | 8,308 | $ | 8,948 | $ | 118,962 | ||||||||||||||||||||||||||
| Intersegment revenue(a) | 207 | 22 | 4,621 | 3,317 | (1) | 8,166 | ||||||||||||||||||||||||||||||||
| 71,946 | 9,255 | 25,355 | 11,625 | 8,947 | 127,128 | |||||||||||||||||||||||||||||||||
| Reconciliation of Revenue | ||||||||||||||||||||||||||||||||||||||
| Other revenue(b) | 2,827 | |||||||||||||||||||||||||||||||||||||
| Eliminations(a) | (8,383) | |||||||||||||||||||||||||||||||||||||
| Total consolidated revenue | $ | 121,572 | ||||||||||||||||||||||||||||||||||||
| Less segment expenses:(c) | ||||||||||||||||||||||||||||||||||||||
| Programming and production | $ | 18,067 | $ | 16,921 | $ | 7,958 | ||||||||||||||||||||||||||||||||
| Marketing and promotion | 1,389 | 1,579 | ||||||||||||||||||||||||||||||||||||
| Other(d) | 26,932 | 3,964 | 4,091 | 818 | 5,602 | |||||||||||||||||||||||||||||||||
| Segment Adjusted EBITDA(e) | $ | 26,948 | $ | 5,291 | $ | 2,955 | $ | 1,269 | $ | 3,345 | $ | 39,808 | ||||||||||||||||||||||||||
| Reconciliation of total segment Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||
| Media, Studios and Theme Parks headquarters and other(f) | (946) | |||||||||||||||||||||||||||||||||||||
| Corporate and other(b)(e) | (1,318) | |||||||||||||||||||||||||||||||||||||
| Eliminations | 105 | |||||||||||||||||||||||||||||||||||||
| Depreciation | (8,854) | |||||||||||||||||||||||||||||||||||||
| Amortization | (5,482) | |||||||||||||||||||||||||||||||||||||
| Interest expense | (4,087) | |||||||||||||||||||||||||||||||||||||
| Investment and other income (loss), net | 1,252 | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 20,478 |
| Comcast 2024 Annual Report on Form 10-K | 68 |
Comcast Corporation
| Year Ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
| (in millions) | Residential Connectivity & Platforms | Business Services Connectivity | Media | Studios | Theme Parks | Total | ||||||||||||||||||||||||||||||||
| Revenue from external customers | $ | 72,177 | $ | 8,798 | $ | 22,147 | $ | 8,294 | $ | 7,541 | $ | 118,957 | ||||||||||||||||||||||||||
| Intersegment revenue(a) | 208 | 21 | 4,572 | 3,963 | 1 | 8,765 | ||||||||||||||||||||||||||||||||
| 72,386 | 8,819 | 26,719 | 12,257 | 7,541 | 127,722 | |||||||||||||||||||||||||||||||||
| Reconciliation of Revenue | ||||||||||||||||||||||||||||||||||||||
| Other revenue(b) | 2,737 | |||||||||||||||||||||||||||||||||||||
| Eliminations(a) | (9,032) | |||||||||||||||||||||||||||||||||||||
| Total consolidated revenue | $ | 121,427 | ||||||||||||||||||||||||||||||||||||
| Less segment expenses:(c) | ||||||||||||||||||||||||||||||||||||||
| Programming and production | $ | 18,500 | $ | 17,650 | $ | 8,778 | ||||||||||||||||||||||||||||||||
| Marketing and promotion | 1,520 | 1,699 | ||||||||||||||||||||||||||||||||||||
| Other(d) | 27,775 | 3,759 | 3,951 | 819 | 4,858 | |||||||||||||||||||||||||||||||||
| Segment Adjusted EBITDA(e) | $ | 26,111 | $ | 5,060 | $ | 3,598 | $ | 961 | $ | 2,683 | $ | 38,414 | ||||||||||||||||||||||||||
| Reconciliation of total segment Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||
| Media, Studios and Theme Parks headquarters and other(f) | (881) | |||||||||||||||||||||||||||||||||||||
| Corporate and other(b)(e) | (1,021) | |||||||||||||||||||||||||||||||||||||
| Eliminations | (66) | |||||||||||||||||||||||||||||||||||||
| Depreciation | (8,724) | |||||||||||||||||||||||||||||||||||||
| Amortization | (5,097) | |||||||||||||||||||||||||||||||||||||
| Goodwill and long-lived asset impairments(g) | (8,583) | |||||||||||||||||||||||||||||||||||||
| Interest expense | (3,896) | |||||||||||||||||||||||||||||||||||||
| Investment and other income (loss), net | (861) | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 9,284 |
(a)Our most significant intersegment revenue transactions include distribution revenue in Media related to fees from Residential Connectivity & Platforms for the rights to distribute television programming, and content licensing revenue in Studios for licenses of owned content to Media. Revenue for licenses of content from Studios to Media is generally recognized at a point in time, consistent with the recognition of transactions with third parties, when the content is delivered and made available for use. The costs of these licenses in Media are recognized as the content is used over the license period. The difference in timing of recognition between segments results in an Adjusted EBITDA impact in eliminations, as the profits (losses) on these transactions are deferred in our consolidated results and recognized as the content is used over the license period.
(b)Includes the operations of our Sky-branded video services and television networks in Germany; Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania; and Xumo, our consolidated streaming platform joint venture with Charter Communications. Corporate and other also includes overhead and personnel costs for Corporate.
(c)The significant expense categories and amounts align with the segment-level information that is regularly provided to our chief operating decision maker. Intersegment expenses are included in the amounts shown.
(d)Other for each segment primarily includes:
Residential Connectivity & Platforms and Business Services Connectivity: technical and support; direct product costs; marketing and promotion; customer service; administrative personnel costs; franchise and other regulatory fees; fees paid to third parties where we sell advertising on their behalf; bad debt; and other business, headquarters and support costs, including building and office expenses, taxes and billing costs necessary to operate the Residential Connectivity & Platforms and Business Services Connectivity segments. Our chief operating decision maker uses aggregate expense information to manage the operations of the Business Services Connectivity segment.
Media and Studios: salaries, employee benefits, rent and other overhead expenses.
Theme Parks: theme park operations, including repairs and maintenance and related administrative expenses; food, beverage and merchandise costs; labor costs; and sales and marketing costs. Our chief operating decision maker uses aggregate expense information to manage the operations of the Theme Parks segment.
(e)We use Adjusted EBITDA as the measure of profit or loss for our segments. For each of our segments, our chief operating decision maker uses Adjusted EBITDA to measure operational strength and performance, assist in the evaluation of underlying trends, and allocate resources in the annual budget and forecasting process. Adjusted EBITDA is also a significant performance measure in our annual incentive compensation programs. From time to time we may report the impact of certain events, gains, losses or other charges related to our segments within Corporate and other.
(f)Includes overhead, personnel costs and other costs necessary to operate the Media, Studios and Theme Parks segments.
(g)Refer to Note 9 for a discussion of impairment charges in 2022 related to goodwill and long-lived assets.
| 69 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
| Note 3: Revenue |
| Year ended December 31 (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| Domestic broadband | $ | 26,228 | $ | 25,489 | $ | 24,469 | |||||||||||
| Domestic wireless | 4,273 | 3,664 | 3,071 | ||||||||||||||
| International connectivity | 4,854 | 4,207 | 3,426 | ||||||||||||||
| Total residential connectivity | 35,355 | 33,359 | 30,966 | ||||||||||||||
| Video | 26,872 | 28,797 | 30,496 | ||||||||||||||
| Advertising | 4,089 | 3,969 | 4,546 | ||||||||||||||
| Other | 5,259 | 5,820 | 6,378 | ||||||||||||||
| Total Residential Connectivity & Platforms Segment | 71,574 | 71,946 | 72,386 | ||||||||||||||
| Total Business Services Connectivity Segment | 9,701 | 9,255 | 8,819 | ||||||||||||||
| Domestic advertising | 10,008 | 8,600 | 10,360 | ||||||||||||||
| Domestic distribution | 11,826 | 10,663 | 10,525 | ||||||||||||||
| International networks | 4,282 | 4,109 | 3,729 | ||||||||||||||
| Other | 2,031 | 1,983 | 2,105 | ||||||||||||||
| Total Media Segment | 28,148 | 25,355 | 26,719 | ||||||||||||||
| Content licensing | 8,063 | 8,231 | 9,348 | ||||||||||||||
| Theatrical | 1,693 | 2,079 | 1,607 | ||||||||||||||
| Other | 1,335 | 1,315 | 1,302 | ||||||||||||||
| Total Studios Segment | 11,092 | 11,625 | 12,257 | ||||||||||||||
| Total Theme Parks Segment | 8,617 | 8,947 | 7,541 | ||||||||||||||
| Other revenue(a) | 2,982 | 2,827 | 2,737 | ||||||||||||||
| Eliminations(a) | (8,383) | (8,383) | (9,032) | ||||||||||||||
| Total revenue | $ | 123,731 | $ | 121,572 | $ | 121,427 |
(a)See Note 2 for additional information on intersegment revenue transactions.
We operate primarily in the United States but also in select international markets. The table below summarizes our consolidated revenue from customers in certain geographic locations.
| Year ended December 31 (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| United States | $ | 96,237 | $ | 94,375 | $ | 96,441 | |||||||||||
| United Kingdom | 14,194 | 13,364 | 13,380 | ||||||||||||||
| Other | 13,300 | 13,833 | 11,606 | ||||||||||||||
| Total revenue | $ | 123,731 | $ | 121,572 | $ | 121,427 |
Residential Connectivity & Platforms Segment
Residential Connectivity & Platforms generates revenue from customers that subscribe to our residential broadband and wireless connectivity services, residential and business video services and residential wireline voice services in the United States, the United Kingdom and Italy. We offer these services individually and as bundled services at a discounted rate.
Subscription rates and related charges vary according to the services and features customers receive, and customers are typically billed in advance and pay on a monthly basis. Revenue from 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 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.
| Comcast 2024 Annual Report on Form 10-K | 70 |
Comcast Corporation
While a portion of our customers are subject to contracts for their services, which are typically 1 month to 2 years in length, based on our evaluation of the terms of these contracts, we recognize revenue for these services primarily on a basis that is consistent with our customers that are not subject to contracts and recognize revenue as the services are provided on a monthly basis. Installation fees for these customers are deferred and recognized as revenue over the period of benefit to the customer, which is less than a year. Certain international customers are under contracts, with terms typically ranging from rolling monthly to 24 months, depending on the service, and may only discontinue service in accordance with the terms of their contracts. We recognize revenue for these customers as the services are provided over the contract period. At any given time, the amount of future revenue to be earned from these customers related to existing agreements is equal to less than 10% of our annual Residential Connectivity & Platforms revenue and will generally be recognized within 24 months. Sales commissions are generally expensed as incurred, as the related period of benefit is less than a year. Sales commissions for the international customers under contract are generally deferred and recognized over the respective contract terms.
Our services generally involve customer premise equipment, such as wireless gateways and set-top boxes, that are generally considered part of our services for revenue recognition. We recognize revenue from the sale of devices, including wireless devices and Sky Glass smart televisions, when they are transferred to the customer. Under an equipment installment plan, customers typically have the option to finance wireless devices and Sky Glass smart televisions interest-free over 24 months, and up to 48 months for international customers. Equipment installment plan receivables under these arrangements are recorded net of imputed interest when the devices are transferred to the customer.
We also have arrangements to sell certain DTC streaming services to our customers. We have concluded we are the sales agent in these arrangements, and we record net commission revenue as earned, which is generally as customers are billed on a monthly basis, within domestic broadband and international connectivity revenue.
Under the terms of our domestic cable franchise agreements, we are generally required to pay the cable franchising authority an amount based on gross video revenue. We generally pass these and other similar fees through to our domestic customers and classify these fees in the respective Residential Connectivity & Platforms services revenue, with the corresponding costs included in other operating and administrative expenses.
Advertising
Revenue is generated from the sale of advertising and technology, tools and solutions relating to advertising businesses. As part of distribution agreements with domestic cable networks, we generally receive an allocation of scheduled advertising time that we sell to advertisers. In addition, we generate revenue from the sale of advertising on our owned Sky-branded entertainment television networks and our digital platforms. In most cases, the available advertising units are sold by our sales force. We also enter into representation agreements under which we sell advertising on behalf of third parties. 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 the third parties 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.
We have determined that a contract exists for our advertising sales arrangements once all terms and conditions are agreed upon, typically when the number of advertising units is specifically identified and scheduled. Advertisements are generally aired or delivered within one year once all terms and conditions are agreed upon. Revenue from these arrangements is recognized in the period in which advertisements are aired or delivered. Payment terms vary by contract, although terms generally require payment within 30 to 60 days from when advertisements are aired or delivered. We also provide technology, tools, data-driven services and marketplace solutions to customers in the media industry to facilitate the more effective engagement of advertisers with their target audiences and recognize revenue when these services are provided.
Business Services Connectivity Segment
Business Services Connectivity generates revenue from subscribers to a variety of our products and services which are offered to businesses. Our connectivity service offerings for small business locations in the United States primarily include broadband, wireline voice and wireless services that are similar to those provided to our residential customers and include certain other features specific to businesses. Our enterprise solutions offerings for medium-sized customers and larger enterprises also include ethernet network services, advanced voice services and a software-defined networking product. We also have certain business connectivity service offerings in the United Kingdom.
| 71 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
We recognize revenue as the services are provided over the contract period. Substantially all of our 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. Customers with contracts may only discontinue service in accordance with the terms of their contracts. 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 Connectivity segment revenue, of which the substantial majority will be recognized within 2 years. Customers under contract typically pay on a monthly basis. Installation revenue and sales commissions are generally deferred and recognized over the respective contract terms.
Media Segment
Advertising
Media generates revenue from the sale of advertising on our linear television networks, Peacock and other digital properties.
We have determined that a contract exists for our advertising sales once all terms and conditions are agreed upon, typically when the number of advertising units is specifically identified and scheduled. Advertisements are generally aired or delivered within one year once all terms and conditions are agreed upon. Revenue is recognized, net of agency commissions, in the period in which advertisements are aired or delivered 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.
Distribution
Media generates revenue from the distribution of television programming in the United States and internationally to traditional multichannel video providers, such as our Residential Connectivity & Platforms segment, and to virtual multichannel video providers that offer streamed linear television networks. This revenue includes amounts under NBC and Telemundo retransmission consent agreements, and we also receive associated fees from NBC-affiliated and Telemundo-affiliated local broadcast television stations. We also receive monthly subscription fees for our Peacock service either directly from customers or from companies who sell Peacock to customers on our behalf. We have determined that we are principal in these arrangements and in the event we do not have transparency into the pricing charged by a company selling Peacock on our behalf, the amount of revenue recognized is limited to the fees receivable from that company pursuant to our arrangement.
Monthly fees received under distribution agreements with multichannel video providers are generally under multiyear agreements with revenue based on the number of subscribers receiving the programming on our television networks and a per subscriber fee, although revenue for certain of our television networks is based on a fixed fee. Payment terms and conditions vary by contract type, although terms generally include payment within 60 days. These arrangements are accounted for as licenses of functional intellectual property and revenue is recognized as programming is provided.
Studios Segment
Content Licensing
Studios generates revenue from the worldwide licensing of our owned film and television content to television networks and DTC streaming service providers, as well as through video on demand services provided by multichannel video providers and other service providers. Our agreements generally include fixed pricing and span multiple years. For example, following a film’s theatrical release, Studios 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 when the licensed content becomes available under the renewal or extension. 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 third-party agreements at any given time equals approximately one-half year to 1 year of annual Studios content licensing revenue, which is the segment with the largest portion of this future 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 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 agreements that include variable pricing, such as pricing based on the number of subscribers to a DTC streaming service sold by our customers, we generally recognize revenue as our customers sell to their subscribers.
| Comcast 2024 Annual Report on Form 10-K | 72 |
Comcast Corporation
Theatrical
Studios generates revenue from the worldwide distribution of our produced and acquired films for exhibition in movie theaters. Our arrangements with exhibitors generally entitle us to a percentage of ticket sales. We recognize revenue as the films are viewed and exhibited in theaters and payment generally occurs within 30 days after exhibition.
Theme Parks Segment
Theme Parks generates revenue primarily from guest spending at our Universal theme parks in Orlando, Florida; Hollywood, California; Osaka, Japan; and Beijing, China. Guest spending includes ticket sales and in-park spending on food, beverages and merchandise. We also generate revenue from our consumer products business. Additionally, we license the right to use the Universal Studios brand name and other intellectual property and provide other services to third parties, including the party that owns and operates the Universal Studios Singapore theme park on Sentosa Island, Singapore. We recognize revenue from 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 in-park spending and consumer products at the point of sale.
Consolidated Balance Sheets
The table below summarizes our accounts receivable, other balances that are not separately presented in our consolidated balance sheets that relate to the recognition of revenue and collection of the related cash, and deferred costs associated with our contracts with customers.
| December 31 (in millions) | 2024 | 2023 | |||||||||
| Receivables, gross | $ | 14,399 | $ | 14,511 | |||||||
| Less: Allowance for credit losses | 738 | 698 | |||||||||
| Receivables, net | $ | 13,661 | $ | 13,813 | |||||||
| Noncurrent receivables, net (included in other noncurrent assets, net) | $ | 1,853 | $ | 1,914 | |||||||
| Contract acquisition and fulfillment costs (included in other noncurrent assets, net)(a) | $ | 1,184 | $ | 1,088 | |||||||
| Noncurrent deferred revenue (included in other noncurrent liabilities) | $ | 665 | $ | 618 |
(a) Amortization of contract acquisition and fulfillment costs totaled $716 million, $692 million and $707 million in 2024, 2023 and 2022, respectively, included in marketing and promotion and other operating and administrative expenses.
| Changes in Allowance for Credit Losses | |||||||||||||||||
| (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| Beginning balance | $ | 698 | $ | 736 | $ | 658 | |||||||||||
| Current-period provision for expected credit losses | 747 | 775 | 758 | ||||||||||||||
| Write-offs charged against the allowance, net of recoveries and other | (707) | (812) | (680) | ||||||||||||||
| Ending balance | $ | 738 | $ | 698 | $ | 736 |
Our accounts receivables include amounts not yet billed related to equipment installment plans, as summarized in the table below.
| December 31 (in millions) | 2024 | 2023 | |||||||||
| Receivables, net | $ | 1,827 | $ | 1,695 | |||||||
| Noncurrent receivables, net (included in other noncurrent assets, net) | 1,225 | 1,223 | |||||||||
| Total | $ | 3,052 | $ | 2,918 |
| Note 4: Programming and Production Costs |
| Year ended December 31 (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| Video distribution programming | $ | 11,428 | $ | 12,460 | $ | 13,013 | |||||||||||
| Film and television content: | |||||||||||||||||
| Owned(a) | 9,617 | 10,224 | 10,765 | ||||||||||||||
| Licensed, including sports rights | 14,668 | 12,619 | 13,151 | ||||||||||||||
| Other | 1,314 | 1,459 | 1,283 | ||||||||||||||
| Total programming and production costs | $ | 37,026 | $ | 36,762 | $ | 38,213 |
(a) Amount includes amortization of owned content of $7.8 billion, $7.8 billion and $8.6 billion for the year ended December 31, 2024, 2023 and 2022, respectively, as well as participations and residuals expenses.
| 73 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
Video Distribution Programming Expenses
We incur programming expenses related to the license of the rights to distribute or integrate third-party programmed television networks, platforms and related content included in video services we sell to end consumers. Programming is generally acquired under multiyear distribution agreements, with fees typically based on the number of customers receiving the television network programming and a per subscriber fee. Programming distribution arrangements are accounted for as executory contracts with expenses generally recognized based on the rates in the agreements, and the arrangements are not subject to impairment.
Film and Television Content
We incur costs related to the production of owned content and the license of the rights to use content owned by third parties and sports rights on our owned television networks and digital properties, which are described as owned and licensed content, respectively. We have determined that the predominant monetization strategy for the substantial majority of our content is on an individual basis.
Capitalized Film and Television Costs
| December 31 (in millions) | 2024 | 2023 | |||||||||
| Owned: | |||||||||||
| In production and in development | $ | 3,342 | $ | 2,893 | |||||||
| Completed, not released | 209 | 317 | |||||||||
| Released, less amortization | 4,545 | 4,340 | |||||||||
| 8,095 | 7,551 | ||||||||||
| Licensed, including sports advances | 4,446 | 5,369 | |||||||||
| Film and television costs | $ | 12,541 | $ | 12,920 |
Production tax incentives reduced capitalized owned film and television costs by $455 million and $418 million as of December 31, 2024 and 2023, respectively, and resulted in a reduction of programming and production costs of $652 million, $578 million and $733 million in 2024, 2023 and 2022, respectively. We have receivables related to our production tax incentives of $2.2 billion and $1.9 billion as of December 31, 2024 and 2023, respectively, a substantial majority of which are reflected in other noncurrent assets in our consolidated balance sheets.
The table below summarizes estimated future amortization expense for the capitalized film and television costs recorded in our consolidated balance sheets as of December 31, 2024.
| (in millions) | Owned | Licensed | ||||||||||||||||||||||||
| Completed, not released: | ||||||||||||||||||||||||||
| 2025 | $ | 127 | ||||||||||||||||||||||||
| Released and licensed content: | ||||||||||||||||||||||||||
| 2025 | $ | 2,299 | $ | 2,373 | ||||||||||||||||||||||
| 2026 | $ | 842 | $ | 1,471 | ||||||||||||||||||||||
| 2027 | $ | 452 | $ | 351 |
We have future minimum commitments for licensed content that are not recognized in our consolidated balance sheet as of December 31, 2024 totaling $2.8 billion.
The following table summarizes the amount of accrued participation and residual liabilities that we expect to pay during the upcoming operating cycle.
| December 31 (in millions) | 2024 | 2023 | |||||||||
| Current portion of accrued participations and residuals | $ | 1,444 | $ | 1,671 |
| Comcast 2024 Annual Report on Form 10-K | 74 |
Comcast Corporation
Capitalization and Recognition of Film and Television Content
We capitalize costs for owned film and television content, including direct costs, production overhead, print costs, development costs and interest, as well as acquired libraries. Amortization for owned content predominantly monetized on an individual basis and accrued costs associated with participations and residuals payments are recorded using the individual film forecast computation method, which recognizes the costs in the same ratio as the associated ultimate revenue. Estimates of ultimate revenue and total costs are based on anticipated release patterns and distribution strategies, public acceptance and historical results for similar productions. Amortization for content predominantly monetized with other owned or licensed content is recorded based on estimated usage. 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. 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.
We capitalize the costs of licensed content when the license period begins, the content is made available for use and the costs of the licenses are known. Licensed content is amortized as the associated programs are used, incorporating estimated viewing patterns.
Owned and licensed content are presented as noncurrent assets in film and television costs. We present amortization of owned and licensed content and accrued costs associated with participations and residuals payments in programming and production costs.
Film and television productions may be eligible for tax incentives from certain state, local or foreign jurisdictions. These incentives generally provide for transferable or redeemable tax credits upon meeting established levels of qualified production spending within a participating jurisdiction. We record a receivable for a production tax incentive program when there is a reasonable assurance of collection with a corresponding reduction of capitalized film and television costs, and the related amortization.
We may enter into co-financing arrangements with third parties to jointly finance or distribute certain of our film productions. These arrangements can take various forms, but in most cases involve the grant of an economic interest in a film to an investor who owns an undivided copyright interest in the film. The number of investors and the terms of these arrangements can vary, although investors generally assume the full risks and rewards of ownership proportionate to their ownership in the film. We account for the proceeds received from the investor under these arrangements as a reduction of our capitalized film costs and the investor’s interest in the profit or loss of the film is recorded as either a charge or a benefit, respectively, in programming and production costs. The investor’s interest in the profit or loss of a film is recorded each period using the individual film forecast computation method.
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 either owned or licensed content is less than the unamortized costs in the balance sheet, we determine the fair value and record an impairment charge to the extent the unamortized costs exceed the fair value. Owned content is assessed either individually or in identified film groups, for content predominantly monetized on an individual basis or with other content, respectively. The substantial majority of our owned content is evaluated for impairment on an individual title basis. Licensed content that is not part of a film group is generally assessed in packages, channels or dayparts. A daypart is an aggregation of programs broadcast during a particular time of day or programs of a similar type. Licensed content is tested for impairment primarily on a channel, network or platform basis, with the exception of our broadcast networks and owned local broadcast television stations, which are tested on a daypart basis. Estimated fair values of owned and licensed content are generally based on Level 3 inputs including analysis of market participant estimates of future cash flows. We record charges related to impairments or content that is substantively abandoned to programming and production costs.
Sports Rights
We recognize the costs of multiyear, live-event sports rights as the rights are used over the contract term based on estimated relative value. Estimated relative value is generally based on the terms of the contract and the nature of and potential revenue generation of the deliverables within the contract. Sports rights are accounted for as executory contracts and are not subject to impairment. When cash payments, including advanced payments, exceed the relative value of the sports rights delivered, we recognize an asset in licensed content. Production costs incurred in advance of airing are also presented in licensed content.
| 75 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
| Note 5: Income Taxes |
| Income (Loss) Before Income Taxes | |||||||||||||||||
| Year ended December 31 (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| Domestic | $ | 19,615 | $ | 22,164 | $ | 19,329 | |||||||||||
| Foreign | (942) | (1,686) | (10,045) | ||||||||||||||
| $ | 18,673 | $ | 20,478 | $ | 9,284 |
| Components of Income Tax Expense | |||||||||||||||||
| Year ended December 31 (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| Current Expense (Benefit): | |||||||||||||||||
| Federal | $ | 2,194 | $ | 6,270 | $ | 4,025 | |||||||||||
| State | 1,115 | 1,591 | 961 | ||||||||||||||
| Foreign | 389 | 249 | 207 | ||||||||||||||
| 3,698 | 8,110 | 5,193 | |||||||||||||||
| Deferred Expense (Benefit): | |||||||||||||||||
| Federal | (599) | (2,126) | (281) | ||||||||||||||
| State | (49) | (468) | (483) | ||||||||||||||
| Foreign | (253) | (145) | (70) | ||||||||||||||
| (902) | (2,739) | (834) | |||||||||||||||
| Income tax expense (benefit) | $ | 2,796 | $ | 5,371 | $ | 4,359 |
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) | 2024 | 2023 | 2022 | ||||||||||||||
| Federal tax at statutory rate | $ | 3,921 | $ | 4,300 | $ | 1,950 | |||||||||||
| State income taxes, net of federal benefit | 363 | 418 | 454 | ||||||||||||||
| Foreign income taxed at different rates(a) | 363 | 455 | 586 | ||||||||||||||
| Adjustments to uncertain and effectively settled tax positions, net | 332 | 353 | 179 | ||||||||||||||
| Tax credits(a) | (328) | (280) | (171) | ||||||||||||||
| Excess tax benefits recognized on share-based compensation | (4) | 4 | (30) | ||||||||||||||
| Tax legislation | (24) | 8 | (287) | ||||||||||||||
| Internal corporate reorganization | (1,920) | — | — | ||||||||||||||
| Goodwill impairment | — | — | 1,666 | ||||||||||||||
| Other | 93 | 113 | 12 | ||||||||||||||
| Income tax expense (benefit) | $ | 2,796 | $ | 5,371 | $ | 4,359 |
(a) We updated our presentation in 2024 to include all federal tax credits within the “tax credits” caption, which results in reclassification of prior period amounts. Federal tax credits for foreign income taxes previously presented within the “foreign income taxed at different rates” caption and federal research and development credits previously presented in a stand-alone caption are now presented within the “tax credits” caption.
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 excess tax benefits or deficiencies that arise when the tax consequences of share-based compensation differ from amounts previously recognized in the statements 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.
| Comcast 2024 Annual Report on Form 10-K | 76 |
Comcast Corporation
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.
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).
| Components of Net Deferred Tax Liability | |||||||||||
| December 31 (in millions) | 2024 | 2023 | |||||||||
| Deferred Tax Assets: | |||||||||||
| Net operating loss and other loss carryforwards | $ | 4,415 | $ | 3,530 | |||||||
| Advance on sale of investment (see Note 7) | 2,437 | 2,367 | |||||||||
| Nondeductible accruals and other | 4,232 | 4,100 | |||||||||
| Less: Valuation allowance | 4,498 | 3,679 | |||||||||
| 6,586 | 6,318 | ||||||||||
| Deferred Tax Liabilities: | |||||||||||
| Property and equipment and intangible assets | 28,672 | 29,337 | |||||||||
| Investments | 934 | 1,002 | |||||||||
| Debt | 2,055 | 1,814 | |||||||||
| Foreign subsidiaries and undistributed foreign earnings | 43 | 59 | |||||||||
| 31,704 | 32,212 | ||||||||||
| Net deferred tax liability | $ | 25,118 | $ | 25,894 |
| Changes in our Valuation Allowance for Deferred Tax Assets | |||||||||||||||||
| (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| Beginning balance | $ | 3,679 | $ | 3,295 | $ | 2,907 | |||||||||||
| Additions charged to income tax expense and other accounts | 910 | 469 | 433 | ||||||||||||||
| Deductions from reserves | (91) | (84) | (45) | ||||||||||||||
| Ending balance | $ | 4,498 | $ | 3,679 | $ | 3,295 |
Changes in our net deferred tax liability in 2024 that were not recorded as deferred income tax expense (benefit) are primarily related to an increase of $124 million associated with items included in other comprehensive income (loss).
As of December 31, 2024, net operating loss and other carryforwards primarily reflects foreign net operating loss carryforwards of $11.8 billion, which primarily relate to our foreign operations in Europe and the majority of which can be carried forward indefinitely. The determination of the realization of the foreign net operating loss carryforwards is dependent on our subsidiaries’ taxable income or loss, redetermination from taxing authorities, 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, 2024 and 2023, our valuation allowance was primarily related to our foreign net operating loss carryforwards.
| 77 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
During 2024, we completed an internal corporate reorganization related to certain foreign subsidiaries, which resulted in a federal net capital loss of $9.1 billion as of December 31, 2024. This capital loss can be carried back and applied against capital gains recognized on our prior federal income tax returns for 2021 through 2023, and as a result, we recognized an income tax benefit and a corresponding refund receivable of $1.9 billion. Deferred federal income tax has not been recognized on the excess of the financial reporting basis over the tax basis in foreign subsidiaries resulting from the reorganization where indefinite reversal criteria have been met. Any liabilities would be recognized upon a taxable disposition of such subsidiaries; however, the determination of the amount of any unrecognized deferred income tax liabilities is not practicable.
A net current federal tax receivable of $2.0 billion is included in other current assets within our consolidated balance sheet as of December 31, 2024. There were no net current federal tax receivables as of December 31, 2023.
Uncertain Tax Positions
| Reconciliation of Unrecognized Tax Benefits | |||||||||||||||||
| (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| Gross unrecognized tax benefits, January 1 | $ | 2,593 | $ | 2,161 | $ | 2,042 | |||||||||||
| Additions based on tax positions related to the current year | 396 | 546 | 380 | ||||||||||||||
| Additions based on tax positions related to prior years | 201 | 1 | 56 | ||||||||||||||
| Reductions for tax positions of prior years | (268) | (43) | (145) | ||||||||||||||
| Reductions due to expiration of statutes of limitations | (29) | (56) | (148) | ||||||||||||||
| Settlements with tax authorities and other | (28) | (15) | (24) | ||||||||||||||
| Gross unrecognized tax benefits, December 31 | $ | 2,865 | $ | 2,593 | $ | 2,161 | |||||||||||
Our gross unrecognized tax benefits include both amounts related to positions for which we have recorded liabilities for potential payment obligations and those for which tax has been assessed and paid. The amounts exclude the federal benefits on state tax positions that were recorded to deferred income taxes. If we were to recognize our gross unrecognized tax benefits in the future, $2.2 billion 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. Accrued interest and penalties associated with our liability for uncertain tax positions were not material in any period presented.
The IRS has completed its examination of our income tax returns for all years through 2022. 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 2011 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.
| Note 6: Debt |
| Debt Outstanding | ||||||||||||||||||||
| December 31 (in billions) | Weighted-Average Interest Rate as of December 31, 2024 | Weighted-Average Interest Rate as of December 31, 2023 | 2024**(b)** | 2023(b) | ||||||||||||||||
| Term loans | 3.2 | % | 3.2 | % | $ | 3.1 | $ | 3.1 | ||||||||||||
| Senior notes with maturities of 5 years or less, at face value | 3.4 | % | 3.5 | % | 26.7 | 25.9 | ||||||||||||||
| Senior notes with maturities between 5 and 10 years, at face value | 3.6 | % | 3.3 | % | 18.1 | 18.8 | ||||||||||||||
| Senior notes with maturities greater than 10 years, at face value | 3.9 | % | 3.8 | % | 55.4 | 53.4 | ||||||||||||||
| Finance lease obligations and other | 1.9 | 2.0 | ||||||||||||||||||
| Debt issuance costs, premiums, discounts, fair value adjustments for acquisition accounting and hedged positions, net | (6.0) | (6.1) | ||||||||||||||||||
| Total debt | 4.1 | % | (a) | 4.0 | % | (a) | 99.1 | 97.1 | ||||||||||||
| Less: Current portion | 4.9 | 2.1 | ||||||||||||||||||
| Noncurrent portion of debt | $ | 94.2 | $ | 95.0 |
(a)Rate represents an effective interest rate and includes the effects of amortization of debt issuance costs, premiums, discounts, fair value adjustments for acquisition accounting and hedged positions, as well as the effects of our derivative financial instruments.
| Comcast 2024 Annual Report on Form 10-K | 78 |
Comcast Corporation
(b)As of December 31, 2024, included in our outstanding debt were foreign currency denominated senior notes and term loans with principal amounts of £3.3 billion, €8.5 billion and ¥22.3 billion RMB. As of December 31, 2023, included in our outstanding debt were foreign currency denominated senior notes and term loans with principal amounts of £2.6 billion, €6.7 billion and ¥22.1 billion RMB.
Our senior notes are unsubordinated and unsecured obligations and are subject to parent and/or subsidiary guarantees. As of December 31, 2024 and 2023, substantially all of our debt obligations were fixed-rate debt and our debt had an estimated fair value of $89.8 billion and $92.2 billion, respectively. The estimated fair value of our publicly traded debt was primarily based on Level 1 inputs that use quoted market value 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.
| Principal Maturities of Debt | |||||
| (in billions) | |||||
| 2025 | $ | 4.9 | |||
| 2026 | $ | 4.9 | |||
| 2027 | $ | 5.7 | |||
| 2028 | $ | 7.0 | |||
| 2029 | $ | 4.8 | |||
| Thereafter | $ | 77.7 |
Revolving Credit Facility and Commercial Paper Program
In May 2024, we entered into a new $11.8 billion revolving credit facility with a syndicate of banks, due May 17, 2029, that may be used for general corporate purposes. We may increase the commitments under the facility up to a total of $14.8 billion, as well as extend the expiration date to no later than May 17, 2031, subject to the approval of the lenders. The interest rate consists of a benchmark rate plus a borrowing margin that is determined based on Comcast’s credit rating. As of December 31, 2024, the borrowing margin for borrowings based on the Adjusted Term SOFR Rate, as defined in the agreement, was 0.875%. The facility requires that we maintain a certain financial ratio based on debt and EBITDA, as defined in the agreement. In connection with our entry into the new credit facility, we terminated our prior credit facility dated as of March 30, 2021.
Our commercial paper program is supported by our revolving credit facility and provides a lower cost source of borrowing to fund short-term working capital requirements.
As of December 31, 2024 and 2023, we had no borrowings outstanding under our revolving credit facility or our commercial paper program. As of December 31, 2024, amounts available under our revolving credit facility, net of amounts outstanding under our commercial paper program and outstanding letters of credit and bank guarantees, totaled $11.8 billion.
Letters of Credit and Bank Guarantees
As of December 31, 2024, we and certain of our subsidiaries had undrawn irrevocable standby letters of credit and bank guarantees totaling $288 million to cover potential fundings under various agreements.
| 79 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
Derivatives and Hedging
We use financial instruments designated as hedging instruments primarily to manage exposures to (1) foreign exchange rate fluctuations resulting from certain foreign currency denominated debt obligations and intercompany funding arrangements and from the consolidation of our foreign operations; and (2) interest rate risk relating to our debt. Our objective is to manage the financial and operational exposure arising from these risks by offsetting gains and losses on underlying exposures with gains and losses on the instruments used to hedge them.
| December 31, 2024 | December 31, 2023 | ||||||||||||||||
| (in billions) | Designation | Notional | Net Derivative Asset (Liability) | Notional | Net Derivative Asset (Liability) | ||||||||||||
| Foreign Exchange Risk | |||||||||||||||||
| Foreign Currency Denominated Debt | |||||||||||||||||
| Cross-currency swaps | Fair value hedge | $ | 1.9 | $ | (0.1) | $ | — | $ | — | ||||||||
| Cross-currency swaps | Cash flow hedge | 0.8 | (0.2) | 0.8 | (0.2) | ||||||||||||
| Intercompany Loans | |||||||||||||||||
| Foreign currency forwards | Fair value hedge | 1.7 | 0.1 | 2.0 | — | ||||||||||||
| Net Investments in Foreign Subsidiaries | |||||||||||||||||
| Foreign currency denominated debt(a) | Net investment hedge | 7.3 | 7.4 | ||||||||||||||
| Cross-currency swaps | Net investment hedge | 1.7 | 0.4 | 2.8 | — | ||||||||||||
| Interest Rate Risk | |||||||||||||||||
| Fixed-to-variable interest rate swaps | Fair value hedge | $ | 2.5 | $ | (0.2) | $ | 2.5 | $ | (0.2) |
(a)Our foreign currency denominated debt designated as net investment hedges are non-derivative instruments and amount shown is the value of debt designated as a hedge.
The fair value of our derivative financial instruments are primarily measured using Level 2 inputs using a market-based approach. Net cash received or paid related to our derivative instruments is classified in our consolidated statements of cash flows based on the objective of the instrument and the classifications of the applicable underlying cash flows.
Changes in the fair value of derivative instruments accounted for as fair value hedges are primarily recorded within earnings and changes in the fair value of cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) until the hedged items affect earnings. The earnings impacts are recorded within the same line item as the item being hedged. The table below summarizes the impact of our hedged foreign currency denominated debt and intercompany loans and the associated derivative contracts on the other income (loss) component of investment and other income (loss).
| (in billions) | 2024 | 2023 | 2022 | ||||||||||||||
| Foreign currency transaction gains (losses) | $ | — | $ | (0.2) | $ | (0.6) | |||||||||||
| Derivative gains (losses) | $ | 0.1 | $ | 0.3 | $ | 0.6 |
Transaction gains and losses resulting from currency movements on debt and changes in the fair value of cross-currency swaps designated as net investment hedges are recorded within the currency translation adjustments component of accumulated other comprehensive income (loss). The table below summarizes the amount of pre-tax gains (losses) related to net investment hedges recognized in the cumulative translation adjustments component of other comprehensive income (loss).
| (in billions) | 2024 | 2023 | 2022 | ||||||||||||||
| Effect of net investment hedges | $ | 0.9 | $ | 0.3 | $ | (0.4) |
| Comcast 2024 Annual Report on Form 10-K | 80 |
Comcast Corporation
| Note 7: Investments and Variable Interest Entities |
| Investment and Other Income (Loss), Net | |||||||||||||||||
| Year ended December 31 (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| Equity in net income (losses) of investees, net | $ | (680) | $ | 789 | $ | (537) | |||||||||||
| Realized and unrealized gains (losses) on equity securities, net | (313) | (130) | (320) | ||||||||||||||
| Other income (loss), net | 502 | 592 | (3) | ||||||||||||||
| Investment and other income (loss), net | $ | (490) | $ | 1,252 | $ | (861) |
The amount of unrealized gains (losses), net recognized in 2024, 2023 and 2022 that related to marketable and nonmarketable equity securities still held as of the end of each reporting period was $(288) million, $(140) million and $(394) million, respectively.
| Investments | |||||||||||
| December 31 (in millions) | 2024 | 2023 | |||||||||
| Equity method | $ | 7,252 | $ | 7,615 | |||||||
| Marketable equity securities | 11 | 39 | |||||||||
| Nonmarketable equity securities | 1,221 | 1,482 | |||||||||
| Other investments | 184 | 559 | |||||||||
| Total investments | 8,668 | 9,694 | |||||||||
| Less: Current investments | 21 | 310 | |||||||||
| Noncurrent investments | $ | 8,647 | $ | 9,385 |
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 partnership or limited liability company interest in an entity with specific ownership accounts, unless we have virtually no influence over the investee’s operating and financial policies. Equity method investments are recorded at cost and are adjusted to recognize (1) our share, based on percentage ownership or other contractual basis, 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 or other distributions 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. Cash distributions received from equity method investments are considered returns on investment and are presented within operating activities in the consolidated statements of cash flows to the extent of cumulative equity in net income of the investee. Additional distributions are presented as investing activities. Distributions presented within operating activities totaled $297 million, $217 million and $162 million in 2024, 2023 and 2022, respectively.
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 is controlled by management companies led by our former CFO through interests that carry all of the voting rights. We are the only third-party investor in Atairos.
In November 2020, we amended our agreement with Atairos, which primarily extended the investment term of the agreement from up to 12 years to up to 16.5 years, extended the period in which capital can be recycled to the full investment period and decreased our commitment to fund Atairos from up to $5 billion to up to $4.5 billion in the aggregate at any one time, subject to certain offsets, with the maximum amount of annual capital calls reduced to $400 million, plus certain amounts previously distributed. In addition, we have separately committed to fund Atairos $40 million annually for a management fee, subject to certain 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.
| 81 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
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. Certain distributions retained by Atairos on our behalf are accounted for as advances and classified within other investments. Atairos may pledge our remaining unfunded capital commitment as security to lenders in connection with certain financing arrangements. This has no effect on our funding commitments. 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 our remaining unfunded capital commitment of $1.4 billion as of December 31, 2024.
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 2024, 2023 and 2022, we made cash capital contributions totaling $73 million, $145 million, and $52 million, respectively, to Atairos. As of December 31, 2024 and 2023, our investment, inclusive of advances classified within other investments, was $5.1 billion and $5.5 billion, respectively.
Hulu and Collateralized Obligation
In 2019, we entered into a series of agreements with The Walt Disney Company and certain of its subsidiaries, whereby we relinquished our board seats and substantially all voting rights associated with our investment in Hulu, and Disney assumed full operational control. Concurrent with these agreements, we also acquired additional ownership interest in Hulu previously held by AT&T. Following these transactions, our interest was approximately 33% and we had the right, but not the obligation, to fund our proportionate share of future equity capital calls. The agreements included put and call provisions regarding our ownership interest in Hulu, pursuant to which, as early as January 2024, we could require Disney to buy, and Disney could require us to sell our interest, in either case, for fair value at that future time subject to a minimum equity value of $27.5 billion for 100% of the equity of Hulu. In the third quarter of 2023, we amended these agreements and agreed, among other things, that the put/call provisions regarding our interest could be exercised in November 2023 (in addition to subsequent periods) and that we would fund our share of prior equity capital calls if the put/call was exercised in November 2023.
In November 2023, we exercised our put right requiring Disney to purchase our interest in Hulu. As a result, in the fourth quarter of 2023, Disney paid us $8.6 billion, representing $9.2 billion for our share of Hulu’s minimum equity value, less $557 million for our share of prior capital calls. Additional proceeds for any excess of the fair value of our interest over the $9.2 billion minimum equity value will be due following final determination of Hulu’s fair value pursuant to a third-party appraisal process. In connection with the transaction, Disney also agreed to share with us 50% of the future tax benefits resulting from the purchase of our interest in Hulu. Because we continue to hold our interest in Hulu, the $9.2 billion payment from Disney is treated as an advance on the sale of our interest, which will be recognized following the finalization of the appraisal process. The receipt of the minimum proceeds resulted in a tax gain in 2023. The recorded value of our investment in Hulu of $883 million and $863 million as of December 31, 2024 and 2023, respectively, continues to reflect our historical cost in applying the equity method, and therefore, is less than its fair value.
In 2019, we entered into a financing arrangement with a syndicate of banks whereby we received proceeds of $5.2 billion under a term loan facility, which was fully collateralized by the minimum guaranteed proceeds of the put/call option related to our investment in Hulu. The term loan was due at the earlier of March 2024 or upon receipt of the proceeds under the put/call provisions and was repaid in the fourth quarter of 2023.
We present the advance on the sale of our investment and the term loan separately in our consolidated balance sheets in the captions “advance on sale of investment” and “collateralized obligation,” respectively.
Marketable Equity Securities
We classify investments with readily determinable fair values that are not accounted for under the equity method as marketable equity securities and the carrying values are primarily presented in other current assets. The changes in fair value of our marketable equity securities 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.
| Comcast 2024 Annual Report on Form 10-K | 82 |
Comcast Corporation
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 generally apply the measurement alternative, adjusting the investments for observable price changes of identical or similar investments of the same issuer, to our nonmarketable equity securities. When an observable event occurs, we estimate the fair values of our nonmarketable equity securities primarily 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
Other investments also includes certain short-term instruments with maturities over three months when purchased, such as commercial paper, certificates of deposit and U.S. government obligations, that are generally accounted for at amortized cost. We had no short-term instruments as of December 31, 2024. As of December 31, 2023, these short-term instruments totaled $254 million. The carrying amounts of these investments approximate their fair values, which are primarily based on Level 2 inputs that use interest rates for instruments with similar terms and remaining maturities. Proceeds from short-term instruments in 2024, 2023 and 2022 were $702 million, $560 million and $1.6 billion, respectively. Purchases of short-term instruments in 2024, 2023 and 2022 were $443 million, $506 million and $1.8 billion, respectively.
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, 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, we record the impairment to other income (loss), net.
Consolidated Variable Interest Entity
Universal Beijing Resort
In 2018, 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”), which opened in September 2021. We own a 30% interest in Universal Beijing Resort and the construction was funded through a combination of debt financing and equity contributions from the partners in accordance with their equity interests. The debt financing, which is being provided by a syndicate of Chinese financial institutions, contains certain covenants and a maximum borrowing limit of ¥29.7 billion RMB (approximately $4.2 billion). The debt financing is secured by the assets of Universal Beijing Resort and the equity interests of the investors. As of December 31, 2024, Universal Beijing Resort had $3.4 billion of debt outstanding, including $3.0 billion principal amount of a term loan outstanding under the debt financing agreement. As of December 31, 2023, Universal Beijing Resort had $3.5 billion of debt outstanding, including $3.1 billion principal amount of a term loan outstanding under the debt financing agreement.
We have concluded that Universal Beijing Resort is a VIE 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. Our consolidated statements of cash flows includes the costs of construction and related borrowings in the “construction of Universal Beijing Resort” and “proceeds from borrowings” captions, respectively, and equity contributions from the noncontrolling interests are included in other financing activities.
As of December 31, 2024, our consolidated balance sheets included assets and liabilities of Universal Beijing Resort totaling $7.3 billion and $7.0 billion, respectively. As of December 31, 2023, our consolidated balance sheets included assets and liabilities of Universal Beijing Resort totaling $7.8 billion and $7.2 billion, respectively. The assets and liabilities of Universal Beijing Resort primarily consist of property and equipment, operating lease assets and liabilities, and debt.
| 83 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
| Note 8: Property and Equipment |
| December 31 (in billions) | Weighted-Average Original Useful Life as of December 31, 2024 | 2024 | 2023 | ||||||||||||||
| Distribution systems | 11 years | $ | 47.8 | $ | 45.7 | ||||||||||||
| Customer premise equipment | 6 years | 23.2 | 25.0 | ||||||||||||||
| Buildings, theme park infrastructure and leasehold improvements | 32 years | 22.1 | 20.9 | ||||||||||||||
| Other equipment | 11 years | 18.1 | 17.5 | ||||||||||||||
| Construction in process | N/A | 8.6 | 7.1 | ||||||||||||||
| Land | N/A | 2.2 | 2.2 | ||||||||||||||
| Property and equipment, at cost | 122.1 | 118.4 | |||||||||||||||
| Less: Accumulated depreciation | 59.5 | 58.7 | |||||||||||||||
| Property and equipment, net | $ | 62.5 | $ | 59.7 |
| Property and Equipment by Geographic Location | |||||||||||
| December 31 (in billions) | 2024 | 2023 | |||||||||
| United States | $ | 52.6 | $ | 48.7 | |||||||
| Other | 10.0 | 11.0 | |||||||||
| Property and equipment, net | $ | 62.5 | $ | 59.7 |
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. Capital expenditures for the construction of Universal Beijing Resort are presented separately in our consolidated statements of cash flows.
We capitalize the costs associated with the construction of and improvements to our HFC network, including scalable infrastructure and line extensions; costs associated with acquiring and deploying new customer premise equipment; and costs associated with installation of our services, including the customer’s connection to our network, in accordance with the accounting guidance related to cable television companies. 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 of previously deployed customer premise equipment, 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.
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 retirement obligations recorded in our consolidated financial statements.
| Comcast 2024 Annual Report on Form 10-K | 84 |
Comcast Corporation
| Note 9: Goodwill and Intangible Assets |
| Goodwill | ||||||||||||||||||||||||||||||||
| (in billions) | Cable Communications | Residential Connectivity & Platforms | Business Services Connectivity | Media | Studios | Theme Parks | Sky | Total | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | $ | 16.2 | $ | — | $ | — | $ | 14.7 | $ | 3.7 | $ | 5.8 | $ | 26.0 | $ | 66.4 | |||||||||||||||||||||||||||||||
| Accumulated impairment losses**(a)** | — | — | — | — | — | — | (7.9) | (7.9) | |||||||||||||||||||||||||||||||||||||||
| $ | 16.2 | $ | — | $ | — | $ | 14.7 | $ | 3.7 | $ | 5.8 | $ | 18.1 | $ | 58.5 | ||||||||||||||||||||||||||||||||
| Segment change | (16.2) | 27.4 | 2.2 | 4.7 | — | — | (18.1) | — | |||||||||||||||||||||||||||||||||||||||
| Foreign currency translation and other | — | 0.8 | — | 0.3 | — | (0.3) | — | 0.8 | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | $ | — | $ | 34.5 | $ | 2.2 | $ | 21.9 | $ | 3.7 | $ | 5.4 | $ | — | $ | 67.8 | |||||||||||||||||||||||||||||||
| Accumulated impairment losses**(a)** | — | (6.3) | — | (2.2) | — | — | — | (8.5) | |||||||||||||||||||||||||||||||||||||||
| $ | — | $ | 28.2 | $ | 2.2 | $ | 19.7 | $ | 3.7 | $ | 5.4 | $ | — | $ | 59.3 | ||||||||||||||||||||||||||||||||
| Foreign currency translation and other | — | (0.4) | — | (0.2) | — | (0.5) | — | (1.0) | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | $ | — | $ | 33.9 | $ | 2.2 | $ | 21.7 | $ | 3.7 | $ | 5.0 | $ | — | $ | 66.4 | |||||||||||||||||||||||||||||||
| Accumulated impairment losses**(a)** | — | (6.1) | — | (2.2) | — | — | — | (8.2) | |||||||||||||||||||||||||||||||||||||||
| $ | — | $ | 27.8 | $ | 2.2 | $ | 19.5 | $ | 3.7 | $ | 5.0 | $ | — | $ | 58.2 | ||||||||||||||||||||||||||||||||
(a) Amounts relate to the 2022 impairment related to Sky, with the 2023 amounts allocated to our new segments on a consistent basis with goodwill. Amounts are impacted by foreign currency translation each period.
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 increased footprint, 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. 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.
In 2022, we recorded a goodwill impairment of $8.1 billion in our Sky reporting unit. The fair value of the reporting unit was estimated using a discounted cash flow analysis. When performing this analysis, we also considered multiples of earnings from comparable public companies and recent market transactions. The decline in fair value primarily resulted from an increased discount rate and reduced estimated future cash flows as a result of macroeconomic conditions in the Sky territories. The impairment is presented in goodwill and long-lived asset impairments in the consolidated statements of income.
| 85 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
| Intangible Assets | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| December 31 (in billions) | Weighted-Average Original Useful Life as of December 31, 2024 | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
| Indefinite-Lived Intangible Assets: | |||||||||||||||||
| Franchise rights | N/A | $ | 59.4 | $ | 59.4 | ||||||||||||
| FCC licenses | N/A | 2.8 | 2.8 | ||||||||||||||
| Total | $ | 62.2 | $ | 62.2 | |||||||||||||
| Finite-Lived Intangible Assets: | |||||||||||||||||
| Customer relationships | 13 years | $ | 20.5 | $ | (15.1) | $ | 20.8 | $ | (13.3) | ||||||||
| Software | 5 years | 24.9 | (16.2) | 23.2 | (14.8) | ||||||||||||
| Other agreements and rights | 27 years | 11.4 | (2.7) | 11.3 | (2.2) | ||||||||||||
| Total | $ | 56.8 | $ | (34.0) | $ | 55.3 | $ | (30.3) |
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 that 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. The purchase of spectrum rights is presented separately in our consolidated statements of cash flows.
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. 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. 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.
Finite-Lived Intangible Assets
Finite-lived intangible assets are subject to amortization and consist primarily of customer relationships acquired in business combinations, software, trade names 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.
The table below presents the estimated amortization expense of our customer relationships and other agreements and rights, including trade names and intellectual property rights.
| Estimated Amortization Expense | |||||
| (in billions) | |||||
| 2025 | $ | 3.0 | |||
| 2026 | $ | 2.8 | |||
| 2027 | $ | 0.6 | |||
| 2028 | $ | 0.5 | |||
| 2029 | $ | 0.5 |
| Comcast 2024 Annual Report on Form 10-K | 86 |
Comcast Corporation
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 arrangements that constitute the purchase of, or convey a license to, 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.
In 2022, in connection with our annual goodwill impairment assessment, we also recorded impairments of intangible assets, which primarily related to customer relationship assets resulting from our Sky acquisition. These impairments totaled $485 million and are presented in goodwill and long-lived asset impairments in the consolidated statements of income.
| Note 10: Employee Benefit Plans |
Deferred Compensation Plans
| As of and for the year ended December 31 (in millions) | 2024 | 2023 | 2022 | ||||||||
| Benefit obligation | $ | 4,812 | $ | 4,507 | $ | 4,158 | |||||
| Interest expense | $ | 370 | $ | 341 | $ | 272 |
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 are credited with income primarily based on a fixed annual rate. 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, 2024 and 2023, the cash surrender value of these policies, which is recorded to other noncurrent assets, net, was $566 million and $512 million, respectively.
Pension and Postretirement Benefit 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 2024, 2023 and 2022, expenses related to these plans totaled $661 million, $650 million and $632 million, respectively.
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. 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. Total contributions we made to multiemployer benefit plans and any potential withdrawal liabilities were not material in any of the periods presented.
| 87 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
| Note 11: 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.
We present excise tax payments related to repurchases of common stock within repurchases of common stock under repurchase program and employee plans in the consolidated statements of cash flows.
| Shares of Common Stock Outstanding | |||||||||||||||||
| (in millions) | Class A | Class B | |||||||||||||||
| Balance, December 31, 2021 | 4,524 | 9 | |||||||||||||||
| Stock compensation plans | 12 | — | |||||||||||||||
| Repurchases and retirements of common stock | (332) | — | |||||||||||||||
| Employee stock purchase plans | 7 | — | |||||||||||||||
| Balance, December 31, 2022 | 4,211 | 9 | |||||||||||||||
| Stock compensation plans | 14 | — | |||||||||||||||
| Repurchases and retirements of common stock | (262) | — | |||||||||||||||
| Employee stock purchase plans | 7 | — | |||||||||||||||
| Balance, December 31, 2023 | 3,969 | 9 | |||||||||||||||
| Stock compensation plans | 14 | — | |||||||||||||||
| Repurchases and retirements of common stock | (212) | — | |||||||||||||||
| Employee stock purchase plans | 6 | — | |||||||||||||||
| Balance, December 31, 2024 | 3,778 | 9 |
| Weighted-Average Common Shares Outstanding | ||||||||||||||
| Year ended December 31 (in millions) | 2024 | 2023 | 2022 | |||||||||||
| Weighted-average number of common shares outstanding – basic | 3,885 | 4,122 | 4,406 | |||||||||||
| Effect of dilutive securities | 24 | 25 | 24 | |||||||||||
| Weighted-average number of common shares outstanding – diluted | 3,908 | 4,148 | 4,430 | |||||||||||
| Antidilutive securities | 184 | 169 | 176 |
Weighted-average common shares outstanding used in calculating 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. Antidilutive securities represent the number of potential common shares related to share-based compensation awards that were excluded from diluted EPS because their effect would have been antidilutive.
| Accumulated Other Comprehensive Income (Loss) | |||||||||||
| December 31 (in millions) | 2024 | 2023 | |||||||||
| Cumulative translation adjustments | $ | (2,474) | $ | (1,596) | |||||||
| Deferred gains (losses) on cash flow hedges | 106 | 49 | |||||||||
| Unrecognized gains (losses) on employee benefit obligations and other | 325 | 293 | |||||||||
| Accumulated other comprehensive income (loss), net of deferred taxes | $ | (2,043) | $ | (1,253) |
| Comcast 2024 Annual Report on Form 10-K | 88 |
Comcast Corporation
| Note 12: Share-Based Compensation |
| Year ended December 31 (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| Share-based compensation expense | $ | 1,069 | $ | 1,021 | $ | 1,100 | |||||||||||
| Related income tax benefit | $ | 222 | $ | 203 | $ | 248 |
Our share-based compensation plans consist primarily of awards of RSUs and stock options to certain employees and directors as part of our long-term incentive compensation structure. Awards generally vest over a period of 5 years and, in the case of stock options, have a 10 year term. RSUs include performance stock units awarded to certain senior executives with vesting after 3 years based upon the achievement of certain performance conditions. These performance stock units are not material to our consolidated results of operations in any period presented. As of December 31, 2024, virtually all of our stock options outstanding were net settled stock options, which result in fewer shares being issued and no cash proceeds being received by us when the options are exercised. Additionally, eligible employees may purchase shares of our common stock at a discount under our employee stock purchase plans.
| Stock Options and Restricted Share Units | |||||||||||
| As of December 31, 2024, unless otherwise stated (in millions, except per share data) | Stock Options | RSUs | |||||||||
| Awards granted during 2024 | 4 | 35 | |||||||||
| Weighted-average exercise price of awards granted during 2024 | $ | 40.72 | |||||||||
| Stock options outstanding and unvested RSUs | 224 | 62 | |||||||||
| Weighted-average exercise price of stock options outstanding | $ | 41.70 | |||||||||
| Weighted-average fair value at grant date of unvested RSUs | $ | 42.11 |
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 primarily 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 | 2024 | 2023 | 2022 | ||||||||||||||
| RSUs fair value | $ | 42.23 | $ | 37.14 | $ | 45.20 | |||||||||||
| Stock options fair value | $ | 9.93 | $ | 8.41 | $ | 8.77 | |||||||||||
| Stock Option Valuation Assumptions: | |||||||||||||||||
| Dividend yield | 2.9 | % | 3.2 | % | 2.4 | % | |||||||||||
| Expected volatility | 24.8 | % | 26.2 | % | 25.0 | % | |||||||||||
| Risk-free interest rate | 4.2 | % | 4.2 | % | 1.8 | % | |||||||||||
| Expected option life (in years) | 5.1 | 5.9 | 5.8 |
As of December 31, 2024, we had unrecognized pretax compensation expense of $2.1 billion related to unvested RSUs and unvested stock options that will be recognized over a weighted-average period of approximately 1.6 years.
| 89 | Comcast 2024 Annual Report on Form 10-K |
Comcast Corporation
| Note 13: Supplemental Financial Information |
| Cash Payments for Interest and Income Taxes | |||||||||||
| Year ended December 31 (in millions) | 2024 | 2023 | 2022 | ||||||||
| Interest | $ | 3,657 | $ | 3,711 | $ | 3,413 | |||||
| Income taxes(a)(b) | $ | 7,096 | $ | 5,107 | $ | 5,265 |
(a) Cash payments for income taxes in 2024 includes $1.7 billion related to the purchase of third-party transferable tax credits.
(b) Changes in other operating assets and liabilities in the consolidated statements of cash flows included an increase in current tax receivables and a decrease in current taxes payable for the year ended December 31, 2024, and an increase in current taxes payable for the year ended December 31, 2023. See Notes 5 and 7.
Noncash Activities
During 2024:
-
we acquired $2.8 billion of property and equipment and intangible assets that were accrued but unpaid
-
we recorded a liability of $1.2 billion for a quarterly cash dividend of $0.31 per common share paid in January 2025
During 2023:
-
we acquired $2.1 billion of property and equipment and intangible assets that were accrued but unpaid
-
we recorded a liability of $1.2 billion for a quarterly cash dividend of $0.29 per common share paid in January 2024
During 2022:
-
we acquired $2.0 billion of property and equipment and intangible assets that were accrued but unpaid
-
we recorded a liability of $1.1 billion for a quarterly cash dividend of $0.27 per common share paid in January 2023
Cash, Cash Equivalents and Restricted Cash
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets to the total of the amounts reported in our consolidated statements of cash flows.
| December 31 (in millions) | 2024 | 2023 | ||||||
| Cash and cash equivalents | $ | 7,322 | $ | 6,215 | ||||
| Restricted cash included in other current assets and other noncurrent assets, net | 55 | 67 | ||||||
| Cash, cash equivalents and restricted cash, end of year | $ | 7,377 | $ | 6,282 |
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. The carrying amounts of our cash equivalents approximate their fair values, which are primarily based on Level 1 inputs.
| Note 14: Commitments and Contingencies |
Licensed Content
We have significant fixed-price purchase obligations related to long-term agreements for licensed content. Refer to Note 4 for additional information.
Leases
Our leases consist primarily of real estate, vehicles and other equipment. We determine if an arrangement is a lease at inception. Lease assets and liabilities are recognized upon commencement of the lease based on the present value of the future minimum lease payments over the lease term. The lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. We generally use our incremental borrowing rate based on information available at the commencement of the lease in determining the present value of future payments. The lease asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives. Lease assets and liabilities are not recorded for leases with an initial term of one year or less.
| Comcast 2024 Annual Report on Form 10-K | 90 |
Comcast Corporation
For our operating leases recorded in the balance sheets, lease expense is based on the future minimum lease payments recognized on a straight-line basis over the term of the lease plus any variable lease costs. In 2024, 2023 and 2022, operating lease expenses, inclusive of short-term and variable lease expenses, recognized in our consolidated statements of income were each $1.2 billion.
| Operating Lease Assets and Liabilities Recorded in our Consolidated Balance Sheet | |||||||||||
| December 31 (in millions) | 2024 | 2023 | |||||||||
| Other noncurrent assets, net | $ | 5,524 | $ | 5,786 | |||||||
| Accrued expenses and other current liabilities | $ | 751 | $ | 748 | |||||||
| Other noncurrent liabilities | $ | 5,569 | $ | 5,838 |
| Future Minimum Lease Commitments for Operating Leases | ||||||||
| (in millions) | December 31, 2024 | |||||||
| 2025 | $ | 965 | ||||||
| 2026 | 896 | |||||||
| 2027 | 787 | |||||||
| 2028 | 624 | |||||||
| 2029 | 406 | |||||||
| Thereafter | 6,163 | |||||||
| Total future minimum lease payments | 9,840 | |||||||
| Less: imputed interest | (3,521) | |||||||
| Total liability | $ | 6,319 |
The weighted-average remaining lease terms for operating leases and the weighted-average discount rates used to calculate our operating lease liabilities as of December 31, 2024 were 17 years and 4.2%, respectively, and as of December 31, 2023 were 17 years and 4.1%, respectively.
In 2024, 2023 and 2022, cash payments for operating leases recorded in the consolidated balance sheets were $1.0 billion, $963 million and $965 million, respectively. Lease assets and liabilities associated with operating leases entered into or modified were not material in any period presented.
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, 2024, our carrying value was $1.1 billion, and the estimated value of the contractual obligation was $1.8 billion based on inputs to the contractual formula as of that date.
Contingencies
We are subject to legal proceedings and claims that arise in the ordinary course of our business. While the amount of ultimate liability with respect to such proceedings and claims is not expected to materially affect our results of operations, cash flows or financial position, any such legal proceedings or claims could be time-consuming and injure our reputation.
| 91 | Comcast 2024 Annual Report on Form 10-K |
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