filings.toolsItem 1. FINANCIAL STATEMENTS
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Item 1. FINANCIAL STATEMENTS
Comcast Corporation
Condensed Consolidated Statements of Income
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| (in millions, except per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
| Revenue | $ | 30,115 | $ | 29,849 | $ | 90,319 | $ | 90,874 | ||||||||||||||||||
| Costs and Expenses: | ||||||||||||||||||||||||||
| Programming and production | 8,652 | 8,949 | 26,506 | 28,406 | ||||||||||||||||||||||
| Marketing and promotion | 1,866 | 2,066 | 5,929 | 6,324 | ||||||||||||||||||||||
| Other operating and administrative | 9,629 | 9,344 | 28,247 | 27,701 | ||||||||||||||||||||||
| Depreciation | 2,203 | 2,150 | 6,662 | 6,525 | ||||||||||||||||||||||
| Amortization | 1,290 | 1,183 | 4,146 | 3,824 | ||||||||||||||||||||||
| Goodwill and long-lived asset impairments | — | 8,583 | — | 8,583 | ||||||||||||||||||||||
| Total costs and expenses | 23,640 | 32,274 | 71,489 | 81,363 | ||||||||||||||||||||||
| Operating income (loss) | 6,475 | (2,425) | 18,830 | 9,511 | ||||||||||||||||||||||
| Interest expense | (1,060) | (960) | (3,068) | (2,922) | ||||||||||||||||||||||
| Investment and other income (loss), net | 50 | (266) | 672 | (975) | ||||||||||||||||||||||
| Income (loss) before income taxes | 5,465 | (3,652) | 16,434 | 5,614 | ||||||||||||||||||||||
| Income tax expense | (1,468) | (1,014) | (4,481) | (3,562) | ||||||||||||||||||||||
| Net income (loss) | 3,997 | (4,665) | 11,954 | 2,052 | ||||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | (49) | (68) | (175) | (295) | ||||||||||||||||||||||
| Net income (loss) attributable to Comcast Corporation | $ | 4,046 | $ | (4,598) | $ | 12,128 | $ | 2,347 | ||||||||||||||||||
| Basic earnings (loss) per common share attributable to Comcast Corporation shareholders | $ | 0.98 | $ | (1.05) | $ | 2.92 | $ | 0.53 | ||||||||||||||||||
| Diluted earnings (loss) per common share attributable to Comcast Corporation shareholders | $ | 0.98 | $ | (1.05) | $ | 2.90 | $ | 0.52 |
See accompanying notes to condensed consolidated financial statements.
Comcast Corporation
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Net income (loss) | $ | 3,997 | $ | (4,665) | $ | 11,954 | $ | 2,052 | |||||||||||||||
| Currency translation adjustments, net of deferred taxes of $(20), $15, $(42) and $304 | (1,154) | (2,464) | 114 | (6,337) | |||||||||||||||||||
| Cash flow hedges: | |||||||||||||||||||||||
| Deferred gains (losses), net of deferred taxes of $(19), $4, $4 and $(34) | 62 | 108 | 41 | 401 | |||||||||||||||||||
| Realized (gains) losses reclassified to net income, net of deferred taxes of $2, $(10), $18 and $(26) | 13 | (56) | (84) | (118) | |||||||||||||||||||
| Employee benefit obligations and other, net of deferred taxes of $2, $9, $5 and $14 | (7) | (29) | (17) | (50) | |||||||||||||||||||
| Comprehensive income (loss) | 2,911 | (7,106) | 12,007 | (4,053) | |||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | (49) | (68) | (175) | (295) | |||||||||||||||||||
| Less: Other comprehensive income (loss) attributable to noncontrolling interests | 7 | (56) | (32) | (68) | |||||||||||||||||||
| Comprehensive income (loss) attributable to Comcast Corporation | $ | 2,953 | $ | (6,983) | $ | 12,214 | $ | (3,689) |
See accompanying notes to condensed consolidated financial statements.
Comcast Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Nine Months Ended September 30, | |||||||||||||||||||||||
| (in millions) | 2023 | 2022 | |||||||||||||||||||||
| Operating Activities | |||||||||||||||||||||||
| Net income | $ | 11,954 | $ | 2,052 | |||||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation and amortization | 10,807 | 10,349 | |||||||||||||||||||||
| Goodwill and long-lived asset impairments | — | 8,583 | |||||||||||||||||||||
| Share-based compensation | 955 | 989 | |||||||||||||||||||||
| Noncash interest expense (income), net | 235 | 234 | |||||||||||||||||||||
| Net (gain) loss on investment activity and other | (266) | 1,172 | |||||||||||||||||||||
| Deferred income taxes | 394 | (326) | |||||||||||||||||||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | |||||||||||||||||||||||
| Current and noncurrent receivables, net | (26) | (574) | |||||||||||||||||||||
| Film and television costs, net | (531) | (753) | |||||||||||||||||||||
| Accounts payable and accrued expenses related to trade creditors | (518) | 152 | |||||||||||||||||||||
| Other operating assets and liabilities | (425) | (1,347) | |||||||||||||||||||||
| Net cash provided by operating activities | 22,579 | 20,530 | |||||||||||||||||||||
| Investing Activities | |||||||||||||||||||||||
| Capital expenditures | (8,922) | (7,062) | |||||||||||||||||||||
| Cash paid for intangible assets | (2,405) | (2,152) | |||||||||||||||||||||
| Construction of Universal Beijing Resort | (119) | (221) | |||||||||||||||||||||
| Proceeds from sales of businesses and investments | 410 | 1,197 | |||||||||||||||||||||
| Purchases of investments | (949) | (2,089) | |||||||||||||||||||||
| Other | 267 | 169 | |||||||||||||||||||||
| Net cash provided by (used in) investing activities | (11,718) | (10,158) | |||||||||||||||||||||
| Financing Activities | |||||||||||||||||||||||
| Proceeds from (repayments of) short-term borrowings, net | (660) | — | |||||||||||||||||||||
| Proceeds from borrowings | 6,046 | 166 | |||||||||||||||||||||
| Repurchases and repayments of debt | (3,041) | (301) | |||||||||||||||||||||
| Repurchases of common stock under repurchase program and employee plans | (7,770) | (9,813) | |||||||||||||||||||||
| Dividends paid | (3,586) | (3,571) | |||||||||||||||||||||
| Other | (126) | 219 | |||||||||||||||||||||
| Net cash provided by (used in) financing activities | (9,136) | (13,299) | |||||||||||||||||||||
| Impact of foreign currency on cash, cash equivalents and restricted cash | (18) | (122) | |||||||||||||||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | 1,707 | (3,049) | |||||||||||||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 4,782 | 8,778 | |||||||||||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 6,489 | $ | 5,729 |
See accompanying notes to condensed consolidated financial statements.
Comcast Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
| (in millions, except share data) | September 30, 2023 | December 31, 2022 | |||||||||
| Assets | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 6,435 | $ | 4,749 | |||||||
| Receivables, net | 12,835 | 12,672 | |||||||||
| Other current assets | 4,870 | 4,406 | |||||||||
| Total current assets | 24,141 | 21,826 | |||||||||
| Film and television costs | 13,067 | 12,560 | |||||||||
| Investments | 8,041 | 7,250 | |||||||||
| Investment securing collateralized obligation | 319 | 490 | |||||||||
| Property and equipment, net of accumulated depreciation of $58,316 and $56,939 | 58,165 | 55,485 | |||||||||
| Goodwill | 58,069 | 58,494 | |||||||||
| Franchise rights | 59,365 | 59,365 | |||||||||
| Other intangible assets, net of accumulated amortization of $29,103 and $25,860 | 27,870 | 29,308 | |||||||||
| Other noncurrent assets, net | 12,036 | 12,497 | |||||||||
| Total assets | $ | 261,072 | $ | 257,275 | |||||||
| Liabilities and Equity | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts payable and accrued expenses related to trade creditors | $ | 12,214 | $ | 12,544 | |||||||
| Accrued participations and residuals | 1,653 | 1,770 | |||||||||
| Deferred revenue | 3,566 | 2,380 | |||||||||
| Accrued expenses and other current liabilities | 8,883 | 9,450 | |||||||||
| Current portion of long-term debt | 2,978 | 1,743 | |||||||||
| Collateralized obligation | 5,174 | — | |||||||||
| Total current liabilities | 34,468 | 27,887 | |||||||||
| Long-term debt, less current portion | 94,351 | 93,068 | |||||||||
| Collateralized obligation | — | 5,172 | |||||||||
| Deferred income taxes | 29,092 | 28,714 | |||||||||
| Other noncurrent liabilities | 19,768 | 20,395 | |||||||||
| Commitments and contingencies | |||||||||||
| Redeemable noncontrolling interests | 230 | 411 | |||||||||
| 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, 4,921,853,673 and 5,083,466,045; outstanding, 4,049,062,645 and 4,210,675,017 | 49 | 51 | |||||||||
| Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375 | — | — | |||||||||
| Additional paid-in capital | 38,866 | 39,412 | |||||||||
| Retained earnings | 53,751 | 51,609 | |||||||||
| Treasury stock, 872,791,028 Class A common shares | (7,517) | (7,517) | |||||||||
| Accumulated other comprehensive income (loss) | (2,525) | (2,611) | |||||||||
| Total Comcast Corporation shareholders’ equity | 82,625 | 80,943 | |||||||||
| Noncontrolling interests | 538 | 684 | |||||||||
| Total equity | 83,163 | 81,627 | |||||||||
| Total liabilities and equity | $ | 261,072 | $ | 257,275 |
See accompanying notes to condensed consolidated financial statements.
Comcast Corporation
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
| (in millions, except per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| Redeemable Noncontrolling Interests | ||||||||||||||||||||
| Balance, beginning of period | $ | 239 | $ | 513 | $ | 411 | $ | 519 | ||||||||||||
| Contributions from (distributions to) noncontrolling interests, net | (5) | (31) | (20) | (64) | ||||||||||||||||
| Other | — | (80) | (171) | (80) | ||||||||||||||||
| Net income (loss) | (5) | 7 | 9 | 34 | ||||||||||||||||
| Balance, end of period | $ | 230 | $ | 409 | $ | 230 | $ | 409 | ||||||||||||
| Class A Common Stock | ||||||||||||||||||||
| Balance, beginning of period | $ | 50 | $ | 53 | $ | 51 | $ | 54 | ||||||||||||
| Repurchases of common stock under repurchase program and employee plans | (1) | (1) | (2) | (2) | ||||||||||||||||
| Balance, end of period | $ | 49 | $ | 52 | $ | 49 | $ | 52 | ||||||||||||
| Additional Paid-In Capital | ||||||||||||||||||||
| Balance, beginning of period | $ | 39,118 | $ | 39,852 | $ | 39,412 | $ | 40,173 | ||||||||||||
| Share-based compensation | 258 | 245 | 801 | 767 | ||||||||||||||||
| Repurchases of common stock under repurchase program and employee plans | (579) | (637) | (1,486) | (1,713) | ||||||||||||||||
| Issuances of common stock under employee plans | 65 | 63 | 223 | 213 | ||||||||||||||||
| Other | 4 | 252 | (83) | 335 | ||||||||||||||||
| Balance, end of period | $ | 38,866 | $ | 39,775 | $ | 38,866 | $ | 39,775 | ||||||||||||
| Retained Earnings | ||||||||||||||||||||
| Balance, beginning of period | $ | 53,900 | $ | 61,209 | $ | 51,609 | $ | 61,902 | ||||||||||||
| Repurchases of common stock under repurchase program and employee plans | (3,005) | (2,890) | (6,357) | (8,100) | ||||||||||||||||
| Dividends declared | (1,190) | (1,179) | (3,628) | (3,607) | ||||||||||||||||
| Other | — | (2) | (1) | (1) | ||||||||||||||||
| Net income (loss) | 4,046 | (4,598) | 12,128 | 2,347 | ||||||||||||||||
| Balance, end of period | $ | 53,751 | $ | 52,541 | $ | 53,751 | $ | 52,541 | ||||||||||||
| Treasury Stock at Cost | ||||||||||||||||||||
| Balance, beginning of period | $ | (7,517) | $ | (7,517) | $ | (7,517) | $ | (7,517) | ||||||||||||
| Balance, end of period | $ | (7,517) | $ | (7,517) | $ | (7,517) | $ | (7,517) | ||||||||||||
| Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
| Balance, beginning of period | $ | (1,432) | $ | (2,170) | $ | (2,611) | $ | 1,480 | ||||||||||||
| Other comprehensive income (loss) | (1,093) | (2,385) | 86 | (6,035) | ||||||||||||||||
| Balance, end of period | $ | (2,525) | $ | (4,555) | $ | (2,525) | $ | (4,555) | ||||||||||||
| Noncontrolling Interests | ||||||||||||||||||||
| Balance, beginning of period | $ | 559 | $ | 1,132 | $ | 684 | $ | 1,398 | ||||||||||||
| Other comprehensive income (loss) | 7 | (56) | (32) | (68) | ||||||||||||||||
| Contributions from (distributions to) noncontrolling interests, net | 16 | (86) | 72 | (86) | ||||||||||||||||
| Other | — | (278) | (2) | (277) | ||||||||||||||||
| Net income (loss) | (44) | (75) | (183) | (329) | ||||||||||||||||
| Balance, end of period | $ | 538 | $ | 637 | $ | 538 | $ | 637 | ||||||||||||
| Total equity | $ | 83,163 | $ | 80,933 | $ | 83,163 | $ | 80,933 | ||||||||||||
| Cash dividends declared per common share | $ | 0.29 | $ | 0.27 | $ | 0.87 | $ | 0.81 |
See accompanying notes to condensed consolidated financial statements.
Comcast Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1: Condensed Consolidated Financial Statements
Basis of Presentation
We have prepared these unaudited condensed consolidated financial statements based on SEC rules that permit reduced disclosure for interim periods. These financial statements include all adjustments that are necessary for a fair presentation of our consolidated results of operations, cash flows and financial condition for the periods shown, including normal, recurring accruals and other items. The consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year.
The year-end condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”). For a more complete discussion of our accounting policies and certain other information, refer to our consolidated financial statements included in our 2022 Annual Report on Form 10-K.
Reclassifications
Reclassifications have been made to our notes to condensed consolidated financial statements for the prior year periods to conform to classifications used in 2023. See Note 2 for a discussion of the changes in our presentation of segment operating results.
Note 2: Segment Information
Beginning in the first quarter of 2023, we changed our presentation of segment operating results around our two primary businesses: Connectivity & Platforms and Content & Experiences.
Connectivity & Platforms: Contains our broadband and wireless connectivity businesses operated under the Xfinity and Comcast brands in the United States and under the Sky brand in certain territories in Europe (the “Connectivity & Platforms markets”). Also includes our video services businesses and the operations of our Sky-branded entertainment television channels in the Connectivity & Platforms markets. Our Connectivity & Platforms business is reported in two reportable business segments:
-
Residential Connectivity & Platforms Segment:** Includes our residential broadband and wireless connectivity services, residential and business video services, advertising sales and Sky channels. Revenue is generated primarily from customers that subscribe to our services and from the sale of advertising and wireless devices.
-
Business Services Connectivity Segment:** Includes our connectivity services for small business locations in the United States, which include broadband, voice and wireless services, as well as our solutions for medium-sized customers and larger enterprises, and our small business connectivity service offerings for international locations. Revenue is generated primarily from customers that subscribe to our services.
Content & Experiences: Contains our media and entertainment businesses that develop, produce, and distribute entertainment, news and information, sports, and other content for global audiences and that own and operate theme parks in the United States and Asia. Our Content & Experiences business is reported in three reportable business segments:
-
Media Segment:** Includes primarily NBCUniversal’s television and streaming business, including national and regional cable networks; the NBC and Telemundo broadcast networks; NBC and Telemundo owned local broadcast television stations; and Peacock, our direct-to-consumer streaming service. Also includes international networks, including most of the Sky Sports channels, and other digital properties. Revenue is generated primarily from the distribution of our television and streaming programming and from the sale of advertising on our television networks, Peacock and other digital properties.
-
Studios Segment:** Includes primarily our NBCUniversal and Sky film and television studio production and distribution operations. Revenue is generated primarily from licensing our owned film and television content in the United States and internationally; and from the worldwide distribution of our produced and acquired films for exhibition in movie theaters.
-
Theme Parks Segment:** Includes primarily the operations of our Universal theme parks in Orlando, Florida; Hollywood, California; Osaka, Japan; and Beijing, China. Revenue is generated primarily from guest spending at our theme parks.
Comcast Corporation
Our other business interests consist primarily of Sky operations outside of the Connectivity & Platforms markets, the operations of Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania, and the operations of Xumo, our consolidated streaming platform joint venture with Charter Communications formed in June 2022.
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 Connectivity & Platforms and Content & Experiences businesses, and between segments within the Content & Experiences business, generally include intercompany profit consistent with third-party transactions. The segments within our Connectivity & Platforms business use certain shared infrastructure, including the cable distribution 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 reportable business segment is presented in the tables below and has been updated to reflect our new segment presentation, including: (1) presentation of Cable Communications results in the Residential Connectivity & Platforms and Business Services Connectivity segments and (2) presentation of Sky’s results across the segments within the Connectivity & Platforms and Content & Experiences businesses, and Corporate and Other. We do not present asset information for our reportable business segments as this information is not used to allocate resources and capital.
| Three Months Ended September 30, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| (in millions) | Revenue(a) | Adjusted EBITDA(b) | Revenue(a) | Adjusted EBITDA(b) | ||||||||||
| Connectivity & Platforms | ||||||||||||||
| Residential Connectivity & Platforms | $ | 17,951 | $ | 6,886 | $ | 17,833 | $ | 6,695 | ||||||
| Business Services Connectivity | 2,320 | 1,335 | 2,215 | 1,288 | ||||||||||
| Connectivity & Platforms | 20,271 | 8,221 | 20,048 | 7,983 | ||||||||||
| Content & Experiences | ||||||||||||||
| Media | 6,029 | 723 | 6,005 | 679 | ||||||||||
| Studios | 2,518 | 429 | 3,296 | 551 | ||||||||||
| Theme Parks | 2,418 | 983 | 2,064 | 819 | ||||||||||
| Headquarters and Other | 13 | (178) | 22 | (199) | ||||||||||
| Eliminations(a) | (419) | 17 | (909) | (59) | ||||||||||
| Content & Experiences | 10,559 | 1,973 | 10,477 | 1,791 | ||||||||||
| Corporate and Other | 643 | (249) | 601 | (318) | ||||||||||
| Eliminations(a) | (1,358) | 16 | (1,277) | 26 | ||||||||||
| Comcast Consolidated | $ | 30,115 | $ | 9,962 | $ | 29,849 | $ | 9,482 |
| Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
| 2023 | 2022 | |||||||||||||||||||||||||||||||
| (in millions) | Revenue(a) | Adjusted EBITDA(b) | Revenue(a) | Adjusted EBITDA(b) | ||||||||||||||||||||||||||||
| Connectivity & Platforms | ||||||||||||||||||||||||||||||||
| Residential Connectivity & Platforms | $ | 53,888 | $ | 20,672 | $ | 54,305 | $ | 20,039 | ||||||||||||||||||||||||
| Business Services Connectivity | 6,894 | 3,988 | 6,589 | 3,784 | ||||||||||||||||||||||||||||
| Connectivity & Platforms | 60,783 | 24,660 | 60,894 | 23,822 | ||||||||||||||||||||||||||||
| Content & Experiences | ||||||||||||||||||||||||||||||||
| Media | 18,376 | 2,847 | 19,951 | 3,380 | ||||||||||||||||||||||||||||
| Studios | 8,561 | 961 | 9,319 | 793 | ||||||||||||||||||||||||||||
| Theme Parks | 6,576 | 2,473 | 5,428 | 1,902 | ||||||||||||||||||||||||||||
| Headquarters and Other | 45 | (610) | 46 | (528) | ||||||||||||||||||||||||||||
| Eliminations(a) | (1,867) | 97 | (2,474) | (98) | ||||||||||||||||||||||||||||
| Content & Experiences | 31,690 | 5,768 | 32,270 | 5,449 | ||||||||||||||||||||||||||||
| Corporate and Other | 2,004 | (841) | 1,931 | (720) | ||||||||||||||||||||||||||||
| Eliminations(a) | (4,157) | 34 | (4,220) | (93) | ||||||||||||||||||||||||||||
| Comcast Consolidated | $ | 90,319 | $ | 29,621 | $ | 90,874 | $ | 28,459 |
Comcast Corporation
(a)Included in Eliminations are transactions that our segments enter into with one another. The most significant of these 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.
A summary of revenue for each of our segments resulting from transactions with other segments and eliminated in consolidation is presented in the table below.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Connectivity & Platforms | |||||||||||||||||||||||
| Residential Connectivity & Platforms | $ | 50 | $ | 50 | $ | 146 | $ | 157 | |||||||||||||||
| Business Services Connectivity | 6 | 4 | 17 | 15 | |||||||||||||||||||
| Content & Experiences | |||||||||||||||||||||||
| Media | 1,160 | 1,073 | 3,492 | 3,493 | |||||||||||||||||||
| Studios | 524 | 1009 | 2,233 | 2,867 | |||||||||||||||||||
| Theme Parks | (1) | 1 | (1) | 1 | |||||||||||||||||||
| Headquarters and Other | 5 | 16 | 18 | 34 | |||||||||||||||||||
| Corporate and Other | 33 | 33 | 120 | 127 | |||||||||||||||||||
| Total intersegment revenue | $ | 1,777 | $ | 2,186 | $ | 6,025 | $ | 6,695 |
(b)We use Adjusted EBITDA as the measure of profit or loss for our operating segments. From time to time we may report the impact of certain events, gains, losses or other charges related to our operating segments within Corporate and Other. Our reconciliation of the aggregate amount of Adjusted EBITDA for our segments to consolidated income before income taxes is presented in the table below.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Adjusted EBITDA | $ | 9,962 | $ | 9,482 | $ | 29,621 | $ | 28,459 | |||||||||||||||
| Adjustments | 6 | 9 | 16 | (15) | |||||||||||||||||||
| Depreciation | (2,203) | (2,150) | (6,662) | (6,525) | |||||||||||||||||||
| Amortization | (1,290) | (1,183) | (4,146) | (3,824) | |||||||||||||||||||
| Goodwill and long-lived asset impairments | — | (8,583) | — | (8,583) | |||||||||||||||||||
| Interest expense | (1,060) | (960) | (3,068) | (2,922) | |||||||||||||||||||
| Investment and other income (loss), net | 50 | (266) | 672 | (975) | |||||||||||||||||||
| Income (loss) before income taxes | $ | 5,465 | $ | (3,652) | $ | 16,434 | $ | 5,614 | |||||||||||||||
Adjustments represent the impact of certain events, gains, losses or other charges that are excluded from Adjusted EBITDA, including costs related to our investment portfolio. Refer to Note 7 for a discussion of impairment charges in 2022 related to goodwill and long-lived assets.
Comcast Corporation
Note 3: Revenue
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Domestic broadband | $ | 6,366 | $ | 6,135 | $ | 19,086 | $ | 18,292 | |||||||||||||||
| Domestic wireless | 917 | 789 | 2,644 | 2,188 | |||||||||||||||||||
| International connectivity | 1,109 | 842 | 3,009 | 2,473 | |||||||||||||||||||
| Total residential connectivity | 8,393 | 7,766 | 24,739 | 22,953 | |||||||||||||||||||
| Video | 7,154 | 7,428 | 21,895 | 23,223 | |||||||||||||||||||
| Advertising | 960 | 1,079 | 2,860 | 3,263 | |||||||||||||||||||
| Other | 1,444 | 1,561 | 4,394 | 4,866 | |||||||||||||||||||
| Total Residential Connectivity & Platforms | 17,951 | 17,833 | 53,888 | 54,305 | |||||||||||||||||||
| Total Business Services Connectivity | 2,320 | 2,215 | 6,894 | 6,589 | |||||||||||||||||||
| Total Connectivity & Platforms | 20,271 | 20,048 | 60,783 | 60,894 | |||||||||||||||||||
| Domestic advertising | 1,913 | 2,089 | 5,965 | 7,530 | |||||||||||||||||||
| Domestic distribution | 2,591 | 2,497 | 7,916 | 7,993 | |||||||||||||||||||
| International networks | 1,019 | 872 | 3,062 | 2,837 | |||||||||||||||||||
| Other | 506 | 547 | 1,433 | 1,591 | |||||||||||||||||||
| Total Media | 6,029 | 6,005 | 18,376 | 19,951 | |||||||||||||||||||
| Content licensing | 1,691 | 2,267 | 5,856 | 6,965 | |||||||||||||||||||
| Theatrical | 504 | 673 | 1,735 | 1,391 | |||||||||||||||||||
| Other | 324 | 356 | 970 | 963 | |||||||||||||||||||
| Total Studios | 2,518 | 3,296 | 8,561 | 9,319 | |||||||||||||||||||
| Total Theme Parks | 2,418 | 2,064 | 6,576 | 5,428 | |||||||||||||||||||
| Headquarters and Other | 13 | 22 | 45 | 46 | |||||||||||||||||||
| Eliminations(a) | (419) | (909) | (1,867) | (2,474) | |||||||||||||||||||
| Total Content & Experiences | 10,559 | 10,477 | 31,690 | 32,270 | |||||||||||||||||||
| Corporate and Other | 643 | 601 | 2,004 | 1,931 | |||||||||||||||||||
| Eliminations(a) | (1,358) | (1,277) | (4,157) | (4,220) | |||||||||||||||||||
| Total revenue | $ | 30,115 | $ | 29,849 | $ | 90,319 | $ | 90,874 |
(a)Included in Eliminations are transactions that our segments enter into with one another. See Note 2 for a description of these transactions.
Condensed Consolidated Balance Sheets
The following tables summarize our accounts receivable and other balances that are not separately presented in our condensed consolidated balance sheets that relate to the recognition of revenue and collection of the related cash.
| (in millions) | September 30, 2023 | December 31, 2022 | |||||||||
| Receivables, gross | $ | 13,520 | $ | 13,407 | |||||||
| Less: Allowance for credit losses | 684 | 736 | |||||||||
| Receivables, net | $ | 12,835 | $ | 12,672 | |||||||
| (in millions) | September 30, 2023 | December 31, 2022 | |||||||||
| Noncurrent receivables, net (included in other noncurrent assets, net) | $ | 1,776 | $ | 1,887 | |||||||
| Noncurrent deferred revenue (included in other noncurrent liabilities) | $ | 627 | $ | 735 |
Comcast Corporation
Our accounts receivables include amounts not yet billed related to equipment installment plans, as summarized in the table below.
| (in millions) | September 30, 2023 | December 31, 2022 | |||||||||
| Receivables, net | $ | 1,539 | $ | 1,388 | |||||||
| Noncurrent receivables, net (included in other noncurrent assets, net) | 1,057 | 1,023 | |||||||||
| Total | $ | 2,596 | $ | 2,411 |
Note 4: Programming and Production Costs
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Video distribution programming | $ | 3,084 | $ | 3,242 | $ | 9,465 | $ | 9,955 | |||||||||||||||
| Film and television content: | |||||||||||||||||||||||
| Owned(a) | 2,083 | 2,538 | 7,622 | 7,965 | |||||||||||||||||||
| Licensed, including sports rights | 3,048 | 2,867 | 8,241 | 9,569 | |||||||||||||||||||
| Other | 438 | 303 | 1,178 | 918 | |||||||||||||||||||
| Total programming and production costs | $ | 8,652 | $ | 8,949 | $ | 26,506 | $ | 28,406 |
(a) Amount includes amortization of owned content of $1.6 billion and $5.9 billion for the three and nine months ended September 30, 2023, respectively, and $2.0 billion and $6.3 billion for the three and nine months ended September 30, 2022, respectively, as well as participations and residuals expenses.
Capitalized Film and Television Costs
| (in millions) | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||
| Owned: | |||||||||||||||||||||||
| In production and in development | $ | 3,116 | $ | 3,210 | |||||||||||||||||||
| Completed, not released | 466 | 130 | |||||||||||||||||||||
| Released, less amortization | 4,063 | 4,634 | |||||||||||||||||||||
| 7,645 | 7,974 | ||||||||||||||||||||||
| Licensed, including sports advances | 5,422 | 4,586 | |||||||||||||||||||||
| Film and television costs | $ | 13,067 | $ | 12,560 |
Note 5: Long-Term Debt
As of September 30, 2023, our debt had a carrying value of $97.3 billion and an estimated fair value of $85.5 billion. As of December 31, 2022, our debt had a carrying value of $94.8 billion and an estimated fair value of $86.9 billion. 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.
Comcast Corporation
Note 6: Investments and Variable Interest Entities
Investment and Other Income (Loss), Net
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Equity in net income (losses) of investees, net | $ | 49 | $ | (242) | $ | 454 | $ | (523) | |||||||||||||||
| Realized and unrealized gains (losses) on equity securities, net | (87) | (2) | (130) | (207) | |||||||||||||||||||
| Other income (loss), net | 88 | (21) | 349 | (245) | |||||||||||||||||||
| Investment and other income (loss), net | $ | 50 | $ | (266) | $ | 672 | $ | (975) |
The amount of unrealized gains (losses), net recognized in the three months ended September 30, 2023 and 2022 that related to marketable and nonmarketable equity securities still held as of the end of each reporting period was $(82) million and $(43) million, respectively. The amount of unrealized gains (losses), net recognized in the nine months ended September 30, 2023 and 2022 that related to marketable and nonmarketable equity securities still held as of the end of each reporting period was $(145) million and $(283) million, respectively.
Investments
| (in millions) | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||
| Equity method | $ | 6,775 | $ | 5,421 | |||||||||||||||||||
| Marketable equity securities | 57 | 96 | |||||||||||||||||||||
| Nonmarketable equity securities | 1,461 | 1,653 | |||||||||||||||||||||
| Other investments | 388 | 972 | |||||||||||||||||||||
| Total investments | 8,681 | 8,142 | |||||||||||||||||||||
| Less: Current investments | 321 | 402 | |||||||||||||||||||||
| Less: Investment securing collateralized obligation | 319 | 490 | |||||||||||||||||||||
| Noncurrent investments | $ | 8,041 | $ | 7,250 |
Equity Me****thod Investments
The amount of cash distributions received from equity method investments presented within operating activities in the condensed consolidated statements of cash flows in the nine months ended September 30, 2023 and 2022 was $185 million and $114 million, respectively.
Atairos
Atairos is a variable interest entity (“VIE”) that 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. For the nine months ended September 30, 2023 and 2022, we made cash capital contributions to Atairos totaling $132 million and $39 million, respectively. As of September 30, 2023 and December 31, 2022, our investment in Atairos, inclusive of certain distributions retained by Atairos on our behalf and classified as advances within other investments, was $5.1 billion and $4.3 billion, respectively. As of September 30, 2023, our remaining unfunded capital commitment was $1.4 billion.
Hulu and Collateralized Obligation
In the third quarter of 2023, we amended our agreements with The Walt Disney Company and certain of its subsidiaries regarding our ownership interest in Hulu and the related put and call provisions. As part of the amendments, among other things, we agreed that the put/call provisions regarding our interest may now be exercised in November 2023 (in addition to subsequent periods).
In 2019, we borrowed $5.2 billion under a term loan facility, which is fully collateralized by the minimum guaranteed proceeds of the put/call option related to our investment in Hulu. The term loan is due at the earlier of March 2024 or upon receipt of proceeds under the put/call provisions. As of both September 30, 2023 and December 31, 2022, the carrying value and estimated fair value of our collateralized obligation were each $5.2 billion. The estimated fair values were based on Level 2 inputs that use interest rates for debt with similar terms and remaining maturities.
Comcast Corporation
We present our investment in Hulu and the term loan separately in our condensed consolidated balance sheets in the captions “investment securing collateralized obligation” and “collateralized obligation,” respectively. The recorded value of our investment reflects our historical cost in applying the equity method and, as a result, is less than its fair value.
Other Investments
Other investments also includes investments in certain short-term instruments with maturities over three months when purchased, such as commercial paper, certificates of deposit and U.S. government obligations, which are generally accounted for at amortized cost. These short-term instruments totaled $253 million and $304 million as of September 30, 2023 and December 31, 2022, respectively. 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 for the nine months ended September 30, 2023 and 2022 were $339 million and $874 million, respectively. Purchases of short-term instruments for the nine months ended September 30, 2023 and 2022 were $286 million and $1.8 billion, respectively.
Consolidated Variable Interest Entity
Universal Beijing Resort
We own a 30% interest in a Universal theme park and resort in Beijing, China (“Universal Beijing Resort”), which opened in September 2021. Universal Beijing Resort is a consolidated VIE with the remaining interest owned by a consortium of Chinese state-owned companies. The construction was funded through a combination of debt financing and equity contributions from the partners in accordance with their equity interests. As of September 30, 2023, 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 September 30, 2023, our condensed consolidated balance sheets included assets and liabilities of Universal Beijing Resort totaling $7.8 billion and $7.1 billion, respectively. The assets and liabilities of Universal Beijing Resort primarily consist of property and equipment, operating lease assets and liabilities, and debt.
Note 7: Goodwill and Intangible Assets
Goodwill
| Connectivity & Platforms | Content & Experiences | ||||||||||||||||||||||||||||
| (in billions) | Cable Communications | Residential Connectivity & Platforms | Business Services Connectivity | Media | Studios | Theme Parks | Sky | Corporate and Other | 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 | — | 0.1 | — | — | — | (0.6) | — | — | (0.4) | ||||||||||||||||||||
| Balance, September 30, 2023 | |||||||||||||||||||||||||||||
| Goodwill | $ | — | $ | 33.6 | $ | 2.2 | $ | 21.6 | $ | 3.7 | $ | 5.2 | $ | — | $ | — | $ | 66.2 | |||||||||||
| Accumulated impairment losses**(a)** | — | (6.0) | — | (2.1) | — | — | — | — | (8.2) | ||||||||||||||||||||
| $ | — | $ | 27.5 | $ | 2.2 | $ | 19.4 | $ | 3.7 | $ | 5.2 | $ | — | $ | — | $ | 58.1 | ||||||||||||
(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.
In the third quarter of 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. In connection with this assessment, in the third quarter of 2022, we also recorded impairments of intangible assets related to Sky, which primarily related to customer relationship assets. These impairments totaled $485 million and are presented in goodwill and long-lived asset impairments in the consolidated statement of income.
Comcast Corporation
Note 8: Equity and Share-Based Compensation
Weighted-Average Common Shares Outstanding
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
| (in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||
| Weighted-average number of common shares outstanding – basic | 4,109 | 4,377 | 4,160 | 4,449 | ||||||||||||||||||||||||||||
| Effect of dilutive securities | 33 | — | 23 | 29 | ||||||||||||||||||||||||||||
| Weighted-average number of common shares outstanding – diluted | 4,141 | 4,377 | 4,184 | 4,477 | ||||||||||||||||||||||||||||
| Antidilutive securities | 86 | 288 | 172 | 156 |
Diluted earnings per common share attributable to Comcast Corporation shareholders (“diluted EPS”) considers the impact of potentially dilutive securities using the treasury stock method. There were no potentially dilutive shares included for the three months ended September 30, 2022 because their effect would be antidilutive as a result of the loss for the period. 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)
| (in millions) | September 30, 2023 | December 31, 2022 | |||||||||
| Cumulative translation adjustments | $ | (2,947) | $ | (3,093) | |||||||
| Deferred gains (losses) on cash flow hedges | 149 | 193 | |||||||||
| Unrecognized gains (losses) on employee benefit obligations and other | 273 | 290 | |||||||||
| Accumulated other comprehensive income (loss), net of deferred taxes | $ | (2,525) | $ | (2,611) |
Share-Based Compensation
Our share-based compensation plans consist primarily of awards of restricted share units (“RSUs”) and stock options to certain employees and directors as part of our approach to long-term incentive compensation. Additionally, through our employee stock purchase plans, employees are able to purchase shares of our common stock at a discount through payroll deductions.
In March 2023, we granted 22 million RSUs and 57 million stock options related to our annual management awards. The weighted-average fair values associated with these grants were $36.62 per RSU and $8.33 per stock option.
During the three months ended September 30, 2023 and 2022, share-based compensation expense recognized in our condensed consolidated statements of income was $238 million and $256 million, respectively. During the nine months ended September 30, 2023 and 2022, share-based compensation expense recognized in our condensed consolidated statements of income was $786 million and $802 million, respectively. As of September 30, 2023, we had unrecognized pretax compensation expense of $2.2 billion related to nonvested RSUs and nonvested stock options.
Note 9: Supplemental Financial Information
Income Taxes
In the third quarter of 2022, a state tax law change was enacted that resulted in a decrease to our net deferred tax liabilities of $286 million, with a corresponding decrease in income tax expense. The goodwill impairment in the third quarter of 2022 (see Note 7) was primarily not deductible for tax purposes.
Cash Payments for Interest and Income Taxes
| Nine Months Ended September 30, | |||||||||||
| (in millions) | 2023 | 2022 | |||||||||
| Interest | $ | 2,566 | $ | 2,341 | |||||||
| Income taxes | $ | 3,823 | $ | 4,022 |
Noncash Activities
During the nine months ended September 30, 2023:
-
we acquired $2.2 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 October 2023
Comcast Corporation
During the nine months ended September 30, 2022:
-
we acquired $2.2 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 $0.27 per common share paid in October 2022
Cash, Cash Equivalents and Restricted Cash
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the condensed consolidated balance sheets to the total of the amounts reported in our condensed consolidated statements of cash flows.
| (in millions) | September 30, 2023 | December 31, 2022 | |||||||||
| Cash and cash equivalents | $ | 6,435 | $ | 4,749 | |||||||
| Restricted cash included in other current assets and other noncurrent assets, net | 53 | 33 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 6,489 | $ | 4,782 |
Note 10: Commitments and Contingencies
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 litigation resulting from any such legal proceedings or claims could be time-consuming and injure our reputation.
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