Comcast - 10-Q quarterly report FY2017 Q1

Comcast - 10-Q quarterly report FY2017 Q1

What is the market capitalization of a company?

DISCLAIMER

Contact

Links

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)



x	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2017



c	Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period from to




Commission File Number	Exact Name of Registrant; State of Incorporation; Address and Telephone Number of Principal Executive Offices	I.R.S. Employer Identification No.
001-32871	COMCAST CORPORATION	27-0000798
	PENNSYLVANIA One Comcast Center Philadelphia, PA 19103-2838 (215) 286-1700

001-36438	NBCUNIVERSAL MEDIA, LLC	14-1682529
	DELAWARE 30 Rockefeller Plaza New York, NY 10112-0015 (212) 664-4444

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.



Comcast Corporation	Yes	x	No	c
NBCUniversal Media, LLC	Yes	x	No	c

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such period that the registrant was required to submit and post such files).



Comcast Corporation	Yes	x	No	c
NBCUniversal Media, LLC	Yes	x	No	c

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.



Comcast Corporation	Large accelerated filer	x	Accelerated filer	c	Non-accelerated filer	c	Smaller reporting company	c	Emerging growth company	c
NBCUniversal Media, LLC	Large accelerated filer	c	Accelerated filer	c	Non-accelerated filer	x	Smaller reporting company	c	Emerging growth company	c

If an emerging growth company, indicate by check mark whether the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Comcast Corporation	c
NBCUniversal Media, LLC	c

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).



Comcast Corporation	Yes	c	No	x
NBCUniversal Media, LLC	Yes	c	No	x

Indicate the number of shares outstanding of each of the registrant’s classes of stock, as of the latest practical date:

As of March 31, 2017, there were 4,733,512,494 shares of Comcast Corporation Class A common stock and 9,444,375 shares of Comcast Corporation Class B common stock outstanding.

Not applicable for NBCUniversal Media, LLC.

NBCUniversal Media, LLC meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format.

TABLE OF CONTENTS



		Page Number
PART I. FINANCIAL INFORMATION
Item 1.	Comcast Corporation Financial Statements	1
	Condensed Consolidated Balance Sheet as of March 31, 2017 and December 31, 2016 (Unaudited)	1
	Condensed Consolidated Statement of Income for the Three Months Ended March 31, 2017 and 2016 (Unaudited)	2
	Condensed Consolidated Statement of Comprehensive Income for the Three Months Ended March 31, 2017 and 2016 (Unaudited)	3
	Condensed Consolidated Statement of Cash Flows for the Three Months Ended March 31, 2017 and 2016 (Unaudited)	4
	Condensed Consolidated Statement of Changes in Equity for the Three Months Ended March 31, 2017 and 2016 (Unaudited)	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	34
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 5.	Other Information	35
Item 6.	Exhibits	36
SIGNATURES		37
NBCUniversal Media, LLC Financial Statements		38

Explanatory Note

This Quarterly Report on Form 10-Q is a combined report being filed separately by Comcast Corporation (“Comcast”) and NBCUniversal Media, LLC (“NBCUniversal”). Comcast owns all of the common equity interests in NBCUniversal, and NBCUniversal meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing its information within this Form 10-Q with the reduced disclosure format. Each of Comcast and NBCUniversal is filing on its own behalf the information contained in this report that relates to itself, and neither company makes any representation as to information relating to the other company. Where information or an explanation is provided that is substantially the same for each company, such information or explanation has been combined in this report. Where information or an explanation is not substantially the same for each company, separate information and explanation has been provided. In addition, separate condensed consolidated financial statements for each company, along with notes to the condensed consolidated financial statements, are included in this report. Unless indicated otherwise, throughout this Quarterly Report on Form 10-Q, we refer to Comcast and its consolidated subsidiaries, including NBCUniversal and its consolidated subsidiaries, as “we,” “us” and “our;” Comcast Cable Communications, LLC and its consolidated subsidiaries as “Comcast Cable;” Comcast Holdings Corporation as “Comcast Holdings;” and NBCUniversal, LLC as “NBCUniversal Holdings.”

This Quarterly Report on Form 10-Q is for the three months ended March 31, 2017. This Quarterly Report modifies and supersedes documents filed before it. The Securities and Exchange Commission (“SEC”) allows us to “incorporate by reference” information that we file with it, which means that we can disclose important information to you by referring you directly to those documents. Information incorporated by reference is considered to be part of this Quarterly Report. In addition, information that we file with the SEC in the future will automatically update and supersede information contained in this Quarterly Report.

You should carefully review the information contained in this Quarterly Report and particularly consider any risk factors set forth in this Quarterly Report and in other reports or documents that we file from time to time with the SEC. In this Quarterly Report, we state our beliefs of future events and of our future financial performance. In some cases, you can identify these so-called

“forward-looking statements” by words such as “may,” “will,” “should,” “expects,” “believes,” “estimates,” “potential,” or “continue,” or the negative of those words, and other comparable words. You should be aware that these statements are only our predictions. In evaluating these statements, you should specifically consider various factors, including the risks outlined below and in other reports we file with the SEC. Actual events or our actual results may differ materially from any of our forward-looking statements. We undertake no obligation to update any forward-looking statements.

Our businesses may be affected by, among other things, the following:


•	our businesses currently face a wide range of competition, and our businesses and results of operations could be adversely affected if we do not compete effectively


•	changes in consumer behavior driven by new technologies and distribution platforms for viewing content may adversely affect our businesses and challenge existing business models


•	a decline in advertisers’ expenditures or changes in advertising markets could negatively impact our businesses


•	our businesses depend on keeping pace with technological developments


•	we are subject to regulation by federal, state, local and foreign authorities, which may impose additional costs and restrictions on our businesses


•	changes to existing statutes, rules, regulations, or interpretations thereof, or adoption of new ones, could have an adverse effect on our businesses


•	programming expenses for our video services are increasing, which could adversely affect our Cable Communications segment’s video business


•	NBCUniversal’s success depends on consumer acceptance of its content, and its businesses may be adversely affected if its content fails to achieve sufficient consumer acceptance or the costs to create or acquire content increase


•	the loss of NBCUniversal’s programming distribution agreements, or the renewal of these agreements on less favorable terms, could adversely affect its businesses


•	we rely on network and information systems and other technologies, as well as key properties, and a disruption, cyber attack, failure or destruction of such networks, systems, technologies or properties may disrupt our businesses


•	we may be unable to obtain necessary hardware, software and operational support


•	weak economic conditions may have a negative impact on our businesses


•	our businesses depend on using and protecting certain intellectual property rights and on not infringing the intellectual property rights of others


•	acquisitions and other strategic initiatives, including the launch of our wireless phone service, present many risks, and we may not realize the financial and strategic goals that we had contemplated


•	labor disputes, whether involving employees or sports organizations, may disrupt our operations and adversely affect our businesses


•	the loss of key management personnel or popular on-air and creative talent could have an adverse effect on our businesses


•	we face risks relating to doing business internationally that could adversely affect our businesses


•	our Class B common stock has substantial voting rights and separate approval rights over several potentially material transactions, and our Chairman and CEO has considerable influence over our company through his beneficial ownership of our Class B common stock

Table of Contents

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

Comcast Corporation

Condensed Consolidated Balance Sheet

(Unaudited)



(in millions, except share data)	March 31, 2017			December 31, 2016
Assets
Current Assets:
Cash and cash equivalents	$	4,022		$	3,301
Receivables, net	7,525			7,955
Programming rights	1,479			1,250
Other current assets	2,219			3,855
Total current assets	15,245			16,361
Film and television costs	6,968			7,252
Investments	5,938			5,247
Property and equipment, net of accumulated depreciation of $49,991 and $49,694	36,626			36,253
Franchise rights	59,364			59,364
Goodwill	36,592			35,980
Other intangible assets, net of accumulated amortization of $11,442 and $11,013	19,014			17,274
Other noncurrent assets, net	2,732			2,769
Total assets	$	182,479		$	180,500
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses related to trade creditors	$	6,658		$	6,915
Accrued participations and residuals	1,811			1,726
Deferred revenue	1,234			1,132
Accrued expenses and other current liabilities	5,862			6,282
Current portion of long-term debt	3,509			5,480
Total current liabilities	19,074			21,535
Long-term debt, less current portion	58,276			55,566
Deferred income taxes	35,348			34,854
Other noncurrent liabilities	10,677			10,925
Commitments and contingencies (Note 10)
Redeemable noncontrolling interests and redeemable subsidiary preferred stock	1,456			1,446
Equity:
Preferred stock—authorized, 20,000,000 shares; issued, zero	—			—
Class A common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 5,606,303,522 and 5,614,950,039; outstanding, 4,733,512,494 and 4,742,159,011	56			56
Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375	—			—
Additional paid-in capital	38,115			38,230
Retained earnings	24,063			23,076
Treasury stock, 872,791,028 Class A common shares	(7,517		)	(7,517		)
Accumulated other comprehensive income (loss)	342			98
Total Comcast Corporation shareholders’ equity	55,059			53,943
Noncontrolling interests	2,589			2,231
Total equity	57,648			56,174
Total liabilities and equity	$	182,479		$	180,500

See accompanying notes to condensed consolidated financial statements.

Table of Contents

Comcast Corporation

Condensed Consolidated Statement of Income

(Unaudited)



	Three Months Ended March 31
(in millions, except per share data)	2017			2016
Revenue	$	20,463		$	18,790
Costs and Expenses:
Programming and production	6,074			5,431
Other operating and administrative	5,827			5,526
Advertising, marketing and promotion	1,530			1,466
Depreciation	1,915			1,785
Amortization	587			493
	15,933			14,701
Operating income	4,530			4,089
Other Income (Expense):
Interest expense	(755		)	(703		)
Investment income (loss), net	59			30
Equity in net income (losses) of investees, net	36			(11		)
Other income (expense), net	35			130
	(625		)	(554		)
Income before income taxes	3,905			3,535
Income tax expense	(1,258		)	(1,311		)
Net income	2,647			2,224
Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock	(81		)	(90		)
Net income attributable to Comcast Corporation	$	2,566		$	2,134
Basic earnings per common share attributable to Comcast Corporation shareholders	$	0.54		$	0.44
Diluted earnings per common share attributable to Comcast Corporation shareholders	$	0.53		$	0.43
Dividends declared per common share	$	0.1575		$	0.1375

See accompanying notes to condensed consolidated financial statements.

Table of Contents

Comcast Corporation

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)



	Three Months Ended March 31
(in millions)	2017			2016
Net income	$	2,647		$	2,224
Unrealized gains (losses) on marketable securities, net of deferred taxes of $(61) and $(1)	104			2
Deferred gains (losses) on cash flow hedges, net of deferred taxes of $(4) and $18	7			(31		)
Amounts reclassified to net income:
Realized (gains) losses on marketable securities, net of deferred taxes of $— and $1	—			(1		)
Realized (gains) losses on cash flow hedges, net of deferred taxes of $— and $(10)	—			17
Employee benefit obligations, net of deferred taxes of $(37) and $(2)	63			2
Currency translation adjustments, net of deferred taxes of $(41) and $(58)	157			238
Comprehensive income	2,978			2,451
Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock	(81		)	(90		)
Other comprehensive (income) loss attributable to noncontrolling interests	(87		)	(137		)
Comprehensive income attributable to Comcast Corporation	$	2,810		$	2,224

See accompanying notes to condensed consolidated financial statements.

Table of Contents

Comcast Corporation

Condensed Consolidated Statement of Cash Flows

(Unaudited)



	Three Months Ended March 31
(in millions)	2017			2016
Net cash provided by operating activities	$	5,656		$	5,399
Investing Activities
Capital expenditures	(2,078		)	(1,885		)
Cash paid for intangible assets	(416		)	(378		)
Acquisitions and construction of real estate properties	(130		)	(140		)
Acquisitions, net of cash acquired	(216		)	(24		)
Proceeds from sales of investments	51			110
Purchases of investments	(1,062		)	(448		)
Other	57			56
Net cash provided by (used in) investing activities	(3,794		)	(2,709		)
Financing Activities
Proceeds from (repayments of) short-term borrowings, net	(1,893		)	(538		)
Proceeds from borrowings	3,500			3,323
Repurchases and repayments of debt	(1,059		)	(48		)
Repurchases of common stock under repurchase program and employee plans	(996		)	(1,427		)
Dividends paid	(657		)	(611		)
Issuances of common stock	—			12
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock	(72		)	(77		)
Other	36			9
Net cash provided by (used in) financing activities	(1,141		)	643
Increase (decrease) in cash and cash equivalents	721			3,333
Cash and cash equivalents, beginning of period	3,301			2,295
Cash and cash equivalents, end of period	$	4,022		$	5,628

See accompanying notes to condensed consolidated financial statements.

Table of Contents

Comcast Corporation

Condensed Consolidated Statement of Changes in Equity

(Unaudited)



	Redeemable Noncontrolling Interests and Redeemable Subsidiary Preferred Stock			Common Stock				Additional Paid-In Capital			Retained Earnings			Treasury Stock at Cost			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interests			Total Equity
(in millions)				A		B
Balance, December 31, 2015	$	1,221		$	57	$	—	$	38,490		$	21,413		$	(7,517	)	$	(174	)	$	1,709		$	53,978
Stock compensation plans								228															228
Repurchases of common stock under repurchase program and employee plans								(310		)	(1,127		)										(1,437		)
Employee stock purchase plans								33															33
Dividends declared											(670		)										(670		)
Other comprehensive income (loss)																	90			137			227
Contributions from (distributions to) noncontrolling interests, net	(5		)																	(36		)	(36		)
Other	(10		)					(5		)													(5		)
Net income (loss)	30										2,134									60			2,194
Balance, March 31, 2016	$	1,236		$	57	$	—	$	38,436		$	21,750		$	(7,517	)	$	(84	)	$	1,870		$	54,512
Balance, December 31, 2016	$	1,446		$	56	$	—	$	38,230		$	23,076		$	(7,517	)	$	98		$	2,231		$	56,174
Stock compensation plans								114															114
Repurchases of common stock under repurchase program and employee plans								(178		)	(828		)										(1,006		)
Employee stock purchase plans								39															39
Dividends declared											(751		)										(751		)
Other comprehensive income (loss)																	244			87			331
Contributions from (distributions to) noncontrolling interests, net	(8		)																	(34		)	(34		)
Other	(11		)					(90		)										253			163
Net income (loss)	29										2,566									52			2,618
Balance, March 31, 2017	$	1,456		$	56	$	—	$	38,115		$	24,063		$	(7,517	)	$	342		$	2,589		$	57,648

See accompanying notes to condensed consolidated financial statements.

Table of Contents

Comcast Corporation

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1: Condensed Consolidated Financial Statements

Basis of Presentation

We have prepared these unaudited condensed consolidated financial statements based on SEC rules that permit reduced disclosure for interim periods. These financial statements include all adjustments that are necessary for a fair presentation of our consolidated results of operations, financial condition and cash flows for the periods shown, including normal, recurring accruals and other items. The consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year.

The year-end condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”). For a more complete discussion of our accounting policies and certain other information, refer to our consolidated financial statements included in our 2016 Annual Report on Form 10-K.

Stock Split

On January 24, 2017, our Board of Directors approved a two-for-one stock split in the form of a 100% stock dividend that was distributed on February 17, 2017 to shareholders of record as of February 8, 2017. The stock split was in the form of one additional share for every share held and was payable in shares of Class A common stock on the existing Class A common stock and Class B common stock. All share-based data, including the number of shares outstanding and per share amounts, have been adjusted to reflect the stock split for all periods presented.

Reclassifications

Reclassifications have been made to our condensed consolidated financial statements for the prior year period to conform to classifications used in 2017.

Note 2: Recent Accounting Pronouncements

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (“FASB”) updated the accounting guidance related to revenue recognition. The updated accounting guidance provides a single, contract-based revenue recognition model to help improve financial reporting by providing clearer guidance on when an entity should recognize revenue and by reducing the number of standards to which an entity has to refer. The updated accounting guidance is effective for us as of January 1, 2018.

We have reviewed a majority of our revenue arrangements and expect our review to be completed in the second quarter of 2017. As a result of our review, we do not expect any material impact on our financial position or results of operations. However, we do expect that the new standard will impact the timing of recognition for (1) our Cable Communications segment’s installation revenue and commission expenses, which upon adoption will be recognized as revenue and costs over a period of time instead of immediately, and (2) our Cable Networks, Broadcast Television and Filmed Entertainment segments’ content licensing revenue associated with renewals or extensions of existing program licensing agreements, which upon adoption will be recognized as revenue when the licensed content becomes available under the renewal or extension instead of when the agreement is renewed or extended. The updated guidance also requires additional disclosures regarding our revenue transactions.

The updated guidance provides companies with alternative methods of adoption and we are in the process of determining our method of adoption, which depends in part upon our completion of the evaluation of our remaining revenue arrangements.

Financial Assets and Financial Liabilities

In January 2016, the FASB updated the accounting guidance related to the recognition and measurement of financial assets and financial liabilities. The updated accounting guidance, among other things, requires that all nonconsolidated equity investments, except those accounted for under the equity method, be measured at fair value and that the changes in fair value be recognized in net income. The updated guidance is effective for us as of January 1, 2018. The updated accounting guidance requires a cumulative effect adjustment to beginning retained earnings in the year the guidance is adopted with certain exceptions. If we had adopted the provisions of the updated guidance as of January 1, 2017 for our equity investments classified as available-for-sale securities, net income attributable to Comcast Corporation would have increased by $104 million for the three months ended March 31, 2017. We are currently in the process of determining the impact that the updated accounting guidance will have on our cost method investments.

Table of Contents

Comcast Corporation

Leases

In February 2016, the FASB updated the accounting guidance related to leases. The updated accounting guidance requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. The asset and liability are initially measured based on the present value of committed lease payments. For a lessee, the recognition, measurement and presentation of expenses and cash flows arising from a lease do not significantly change from previous guidance. For a lessor, the accounting applied is also largely unchanged from previous guidance. The updated guidance is effective for us as of January 1, 2019 and early adoption is permitted. The updated accounting guidance must be adopted using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. We are currently in the process of determining the impact that the updated accounting guidance will have on our consolidated financial statements.

Share-Based Compensation

In March 2016, the FASB updated the accounting guidance that affects several aspects of the accounting for share-based compensation. The most significant change for us relates to the presentation of the income and withholding tax consequences of share-based compensation in our consolidated financial statements. Among the changes, the updated guidance requires that the excess income tax benefits or deficiencies that arise when the tax consequences of share-based compensation differ from amounts previously recognized in the statement of income be recognized as income tax benefit or expense in the statement of income rather than as additional paid-in capital in the balance sheet. The guidance also states that excess income tax benefits should not be presented separately from other income taxes in the statement of cash flows and, thus, should be classified as an operating activity rather than a financing activity as they were under the prior guidance. In addition, the updated guidance requires that, when an employer withholds shares upon exercise of options or the vesting of restricted stock for the purpose of meeting withholding tax requirements, the cash paid for withholding taxes be classified as a financing activity and we include these amounts in the caption “repurchases of common stock under repurchase program and employee plans” in our consolidated statement of cash flows. We previously recorded these amounts as operating activities.

We adopted the updated guidance as of January 1, 2017 and as required, we prospectively adopted the provisions that relate to the recognition of the excess income tax benefits or deficiencies in the statement of income. The excess tax benefits resulted in a decrease to income tax expense of $139 million and an increase to diluted earnings per common share attributable to Comcast Corporation shareholders of $0.03 for the three months ended March 31, 2017. The prior year period in our consolidated statement of income was not adjusted as a result of these provisions.

In addition, we retrospectively adopted the provisions of this guidance related to changes to the statement of cash flows for all periods presented. This resulted in increases to net cash provided by operating activities and decreases to net cash provided by (used in) financing activities of $385 million and $289 million for the three months ended March 31, 2017 and 2016, respectively.

Note 3: Earnings Per Share

Computation of Diluted EPS



	Three Months Ended March 31
	2017					2016
(in millions, except per share amounts)	Net Income Attributable to Comcast Corporation		Shares	Per Share Amount		Net Income Attributable to Comcast Corporation		Shares	Per Share Amount
Basic EPS attributable to Comcast Corporation shareholders	$	2,566	4,747	$	0.54	$	2,134	4,868	$	0.44
Effect of dilutive securities:
Assumed exercise or issuance of shares relating to stock plans			85					57
Diluted EPS attributable to Comcast Corporation shareholders	$	2,566	4,832	$	0.53	$	2,134	4,925	$	0.43

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

Table of Contents

Comcast Corporation

Note 4: Significant Transactions

FCC Spectrum Auction

On April 13, 2017, the Federal Communications Commission (“FCC”) announced the results of its spectrum auction. In the auction, NBCUniversal agreed to relinquish FCC licenses for spectrum in the New York, Philadelphia and Chicago designated market areas (“DMAs”) and will receive proceeds of $482 million. As of March 31, 2017, the book value of these licenses was $144 million and was recorded in other current assets in the condensed consolidated balance sheet. NBCUniversal will share broadcast signals for its NBC and Telemundo stations in these DMAs. In connection with the auction, we also agreed to acquire $1.7 billion of spectrum. We had previously made a deposit of $1.8 billion to participate in the auction, which was recorded in other intangible assets in the condensed consolidated balance sheet as of March 31, 2017.

Universal Studios Japan

On April 6, 2017, we acquired the remaining interests in Universal Studios Japan that we did not already own for approximately $2.3 billion. The acquisition was funded through cash on hand and borrowings under our commercial paper program. During the second quarter of 2017, we obtained commitments from lenders to refinance the Universal Studios Japan term loans, which we expect will, among other things, increase the borrowings, extend the maturity date and include a guarantee from us. We expect to use a portion of the Universal Studios Japan term loans proceeds to repay a portion of amounts outstanding under our commercial paper program.

DreamWorks Animation

On August 22, 2016, we acquired all of the outstanding stock of DreamWorks Animation for $3.8 billion. DreamWorks Animation’s stockholders received $41 in cash for each share of DreamWorks Animation common stock. DreamWorks Animation creates animated feature films, television series and specials, live entertainment, and related consumer products. The results of operations for DreamWorks Animation are reported in our Filmed Entertainment segment following the acquisition date.

Preliminary Allocation of Purchase Price

The transaction was accounted for under the acquisition method of accounting and, accordingly, the assets and liabilities are to be recorded at their fair market values as of the acquisition date. We recorded the acquired assets and liabilities of DreamWorks Animation at their estimated fair values based on preliminary valuation analyses. In valuing acquired assets and liabilities, fair value estimates were primarily based on Level 3 inputs, including future expected cash flows, market rate assumptions and discount rates. The fair value of the assumed debt was primarily based on quoted market values. The fair value of the liability related to a tax receivable agreement that DreamWorks Animation had previously entered into with one of its former stockholders (the “tax receivable agreement”) was based on the contractual settlement provisions in the agreement. Further, we recorded the deferred income taxes based on our estimates of the tax basis of the acquired net assets and the valuation allowances based on the expected use of net operating loss carryforwards. The goodwill is not deductible for tax purposes. During the three months ended March 31, 2017, we updated the preliminary allocation of purchase price for DreamWorks Animation, which primarily resulted in increases to intangible assets, noncontrolling interests and goodwill and a decrease in deferred income tax assets. The changes did not have a material impact on our condensed consolidated financial statements. We may adjust these amounts further as valuations are finalized and we obtain information necessary to complete the analyses, but no later than one year from the acquisition date.

The table below presents the preliminary allocation of the purchase price to the assets and liabilities of DreamWorks Animation.



Preliminary Allocation of Purchase Price
(in millions)
Film and television costs	$	854
Intangible assets	362
Working capital	232
Debt	(381		)
Tax receivable agreement	(146		)
Deferred income taxes	293
Other noncurrent assets and liabilities	114
Identifiable net assets (liabilities) acquired	1,328
Noncontrolling interests	(337		)
Goodwill	2,782
Cash consideration transferred	$	3,773

Table of Contents

Comcast Corporation

The tax receivable agreement was settled immediately following the acquisition and the payment was recorded as an operating activity in our condensed consolidated statement of cash flows in the third quarter of 2016. In addition, we repaid all of the assumed debt of DreamWorks Animation in the third quarter of 2016.

Revenue and net income attributable to the acquisition of DreamWorks Animation were not material for the three months ended March 31, 2017.

Note 5: Film and Television Costs



(in millions)	March 31, 2017		December 31, 2016
Film Costs:
Released, less amortization	$	1,657	$	1,750
Completed, not released	469		50
In production and in development	982		1,310
	3,108		3,110
Television Costs:
Released, less amortization	2,008		1,953
In production and in development	729		853
	2,737		2,806
Programming rights, less amortization	2,602		2,586
	8,447		8,502
Less: Current portion of programming rights	1,479		1,250
Film and television costs	$	6,968	$	7,252

Note 6: Investments



(in millions)	March 31, 2017		December 31, 2016
Fair Value Method:
Snap	$	662	$	—
Other	161		198
	823		198
Equity Method:
Atairos	1,624		1,601
Hulu	171		225
Other	631		550
	2,426		2,376
Cost Method:
AirTouch	1,602		1,599
BuzzFeed	400		400
Other	698		771
	2,700		2,770
Total investments	5,949		5,344
Less: Current investments	11		97
Noncurrent investments	$	5,938	$	5,247

Investment Income (Loss), Net



	Three Months Ended March 31
(in millions)	2017			2016
Gains (losses) on sales and exchanges of investments, net	$	(1	)	$	2
Investment impairment losses	(4		)	(20		)
Interest and dividend income	33			29
Other, net	31			19
Investment income (loss), net	$	59		$	30

Table of Contents

Comcast Corporation

Fair Value Method

Snap

In March 2017, we acquired an interest in Snap Inc. for $500 million as part of its initial public offering, which we have classified as available for sale. Snap is a camera company whose primary product is Snapchat, a camera app that was created to help people communicate through short videos and images.

Equity Method

Atairos

For the three months ended March 31, 2017, we made cash capital contributions totaling $457 million to Atairos Group, Inc., which included amounts accrued as of December 31, 2016. Atairos follows investment company accounting and records its investments at their fair values each reporting period with the net gains or losses reflected in its statement of income. We recognize our share of these gains and losses in equity in net income (losses) of investees, net. For the three months ended March 31, 2017, we recognized our share of Atairos income of $57 million. For the three months ended March 31, 2016, we recognized our share of Atairos losses of $15 million.

The Weather Channel

In January 2016, following a legal restructuring at The Weather Channel, we and the other investors sold the entity holding The Weather Channel’s product and technology businesses to IBM. Following the close of the transaction, we continue to hold an investment in The Weather Channel cable network through a new holding company. As a result of the sale of our investment, we recognized a pretax gain of $108 million in other income (expense), net for the three months ended March 31, 2016.

Cost Method

AirTouch

We hold two series of preferred stock of Verizon Americas, Inc., formerly known as AirTouch Communications, Inc. (“AirTouch”), a subsidiary of Verizon Communications Inc., which are redeemable in April 2020. As of March 31, 2017, the estimated fair value of the AirTouch preferred stock and the estimated fair value of the associated liability related to the redeemable subsidiary preferred shares issued by one of our consolidated subsidiaries were each $1.8 billion. The estimated fair values are based on Level 2 inputs that use pricing models whose inputs are derived primarily from or corroborated by observable market data through correlation or other means for substantially the full term of the financial instrument.

Note 7: Long-Term Debt

As of March 31, 2017, our debt had a carrying value of $61.8 billion and an estimated fair value of $66.7 billion. The estimated fair value of our publicly traded debt was primarily based on Level 1 inputs that use quoted market values for the debt. The estimated fair value of debt for which there are no quoted market prices was based on Level 2 inputs that use interest rates available to us for debt with similar terms and remaining maturities.

Debt Borrowings and Repayments

In March 2017, we issued $1.005 billion aggregate principal amount of 4.45% senior notes due 2047. In January 2017, we issued $1.25 billion aggregate principal amount of 3.00% senior notes due 2024 and $1.25 billion aggregate principal amount of 3.30% senior notes due 2027.

In January 2017, we repaid at maturity $1.0 billion aggregate principal amount of 6.50% senior notes due 2017.

Revolving Credit Facilities

As of March 31, 2017, amounts available under our consolidated revolving credit facilities, net of amounts outstanding under our commercial paper programs and outstanding letters of credit, totaled $7.4 billion, which included $585 million available under NBCUniversal Enterprise’s revolving credit facility.

Commercial Paper Programs

As of March 31, 2017, NBCUniversal Enterprise had $915 million face amount of commercial paper outstanding. Comcast had no commercial paper outstanding.

Note 8: Share-Based Compensation

Our share-based compensation plans consist primarily of awards of RSUs and stock options to certain employees and directors as part of our approach to long-term incentive compensation. Additionally, through our employee stock purchase plans, employees are able to purchase shares of our common stock at a discount through payroll deductions.

Table of Contents

Comcast Corporation

In March 2017, we granted 10.6 million RSUs and 39.1 million stock options related to our annual management awards. The weighted-average fair values associated with these grants were $37.42 per RSU and $7.01 per stock option.

Recognized Share-Based Compensation Expense



	Three Months Ended March 31
(in millions)	2017		2016
Restricted share units	$	74	$	70
Stock options	40		37
Employee stock purchase plans	10		8
Total	$	124	$	115

As of March 31, 2017, we had unrecognized pretax compensation expense of $1.0 billion and $569 million related to nonvested RSUs and nonvested stock options, respectively.

Note 9: Supplemental Financial Information

Receivables



(in millions)	March 31, 2017		December 31, 2016
Receivables, gross	$	8,111	$	8,622
Less: Allowance for returns and customer incentives	347		417
Less: Allowance for doubtful accounts	239		250
Receivables, net	$	7,525	$	7,955

Accumulated Other Comprehensive Income (Loss)



(in millions)	March 31, 2017			March 31, 2016
Unrealized gains (losses) on marketable securities	$	104		$	2
Deferred gains (losses) on cash flow hedges	(7		)	(60		)
Unrecognized gains (losses) on employee benefit obligations	282			8
Cumulative translation adjustments	(37		)	(34		)
Accumulated other comprehensive income (loss), net of deferred taxes	$	342		$	(84	)

Net Cash Provided by Operating Activities



	Three Months Ended March 31
(in millions)	2017			2016
Net income	$	2,647		$	2,224
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,502			2,278
Share-based compensation	173			153
Noncash interest expense (income), net	58			55
Equity in net (income) losses of investees, net	(36		)	11
Cash received from investees	17			16
Net (gain) loss on investment activity and other	(53		)	(126		)
Deferred income taxes	265			217
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables, net	465			562
Film and television costs, net	46			(80		)
Accounts payable and accrued expenses related to trade creditors	(190		)	12
Other operating assets and liabilities	(238		)	77
Net cash provided by operating activities	$	5,656		$	5,399

Table of Contents

Comcast Corporation

Cash Payments for Interest and Income Taxes



	Three Months Ended March 31
(in millions)	2017		2016
Interest	$	895	$	723
Income taxes	$	132	$	190

Noncash Investing and Financing Activities

During the three months ended March 31, 2017:


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


•	we recorded a liability of $747 million for a quarterly cash dividend of $0.1575 per common share to be paid in April 2017

Note 10: Commitments and Contingencies

Redeemable Subsidiary Preferred Stock

As of March 31, 2017, the fair value of the NBCUniversal Enterprise redeemable subsidiary preferred stock was $763 million. The estimated fair value is based on Level 2 inputs that use pricing models whose inputs are derived primarily from or corroborated by observable market data through correlation or other means for substantially the full term of the financial instrument.

Contingencies

We are a defendant in a lawsuit filed in December 2011 by Sprint Communications Company L.P. (“Sprint”) in the United States District Court for the District of Kansas. Sprint’s initial complaint alleged that Comcast Digital Voice and XFINITY Voice infringe twelve Sprint patents covering various aspects of a telecommunications system. In March 2015, Sprint withdrew its allegations of infringement for two of the patents. In December 2016, the Court granted summary judgment for Comcast with respect to non-infringement of one of the patents and granted summary judgment for Sprint of one of the patents as to infringement, but not as to the patent’s validity, with respect to some but not all of Comcast’s accused telecommunications systems. In January 2017, the Court entered judgment in favor of Comcast on Sprint’s claims for infringement of two of the patents. In March 2017, Sprint indicated that it would not proceed to trial on three of the patents. Trial with respect to the four remaining patents, including the patent for which the Court granted partial summary judgment to Sprint, is set to begin in late October 2017. Sprint seeks approximately $950 million in damages, plus pre-judgment interest. Sprint has further indicated that it may seek to add an allegation that Comcast willfully infringed Sprint’s patents and should be subject to increased damages, which could as much as triple the amount of any damages awarded.

We believe the claims in the Sprint lawsuit are without merit and are defending the action vigorously. We cannot predict the outcome of the Sprint lawsuit, estimate a range of possible loss or determine how the final resolution of the action would affect our results of operations or cash flows for any one period or our consolidated financial position. In addition, as any action nears a trial, there is an increased possibility that the action may be settled by the parties. Nevertheless, we do not expect the final disposition of the Sprint lawsuit to have a material adverse effect on our consolidated financial position, but it could be material to our consolidated results of operations or cash flows for any one period.

We also are a defendant in several unrelated lawsuits claiming infringement of various patents relating to various aspects of our businesses. In certain of these cases, other industry participants are also defendants, and also in certain of these cases, we expect that any potential liability would be in part or in whole the responsibility of our equipment and technology vendors under applicable contractual indemnification provisions, including the Sprint lawsuit above. In addition, we are subject to other legal proceedings and claims that arise in the ordinary course of our business. While the amount of ultimate liability with respect to such actions is not expected to materially affect our results of operations, cash flows or financial position, any litigation resulting from any such legal proceedings or claims could be time-consuming and injure our reputation.

Table of Contents

Comcast Corporation

Note 11: Financial Data by Business Segment

We present our operations in five reportable business segments:


•	Cable Communications: Consists of the operations of Comcast Cable, which is one of the nation’s largest providers of video, high-speed Internet, voice, and security and automation services to residential customers under the XFINITY brand; we also provide these and other services to business customers and sell advertising.


•	Cable Networks: Consists primarily of our national cable networks, our regional sports and news networks, our international cable networks, and our cable television studio production operations.


•	Broadcast Television: Consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo owned local broadcast television stations, the NBC Universo national cable network, and our broadcast television studio production operations.


•	Filmed Entertainment: Consists primarily of the operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment worldwide; our films are also produced under the Illumination, Focus Features and DreamWorks Animation names.


•	Theme Parks: Consists primarily of our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan.

We use Adjusted EBITDA (formerly operating income before depreciation and amortization) to evaluate the profitability of our operating segments and the components of net income attributable to Comcast Corporation below Adjusted EBITDA are not separately evaluated by our management. Our financial data by business segment is presented in the tables below.



	Three Months Ended March 31, 2017
(in millions)	Revenue^(e)			Adjusted EBITDA^(f)			Depreciation and Amortization		Operating Income (Loss)			Capital Expenditures		Cash Paid for Intangible Assets
Cable Communications^(a)	$	12,912		$	5,198		$	1,980	$	3,218		$	1,781	$	352
NBCUniversal
Cable Networks	2,641			1,116			214		902			2		3
Broadcast Television	2,208			322			32		290			29		3
Filmed Entertainment	1,981			368			21		347			10		5
Theme Parks	1,118			397			142		255			229		13
Headquarters and Other^(b)	8			(185		)	99		(284		)	15		31
Eliminations^(c)	(88		)	(1		)	—		(1		)	—		—
NBCUniversal	7,868			2,017			508		1,509			285		55
Corporate and Other^(d)	208			(194		)	14		(208		)	12		9
Eliminations^(c)	(525		)	11			—		11			—		—
Comcast Consolidated	$	20,463		$	7,032		$	2,502	$	4,530		$	2,078	$	416



	Three Months Ended March 31, 2016
(in millions)	Revenue^(e)			Adjusted EBITDA^(f)			Depreciation and Amortization		Operating Income (Loss)			Capital Expenditures		Cash Paid for Intangible Assets
Cable Communications^(a)	$	12,204		$	4,889		$	1,843	$	3,046		$	1,576	$	324
NBCUniversal
Cable Networks	2,453			956			190		766			1		1
Broadcast Television	2,084			284			32		252			19		3
Filmed Entertainment	1,383			167			8		159			3		3
Theme Parks	1,026			375			98		277			200		9
Headquarters and Other^(b)	3			(160		)	86		(246		)	72		36
Eliminations^(c)	(88		)	—			—		—			—		—
NBCUniversal	6,861			1,622			414		1,208			295		52
Corporate and Other^(d)	199			(154		)	21		(175		)	14		2
Eliminations^(c)	(474		)	10			—		10			—		—
Comcast Consolidated	$	18,790		$	6,367		$	2,278	$	4,089		$	1,885	$	378

Table of Contents

Comcast Corporation


(a)	For the three months ended March 31, 2017 and 2016, Cable Communications segment revenue was derived from the following sources:



	Three Months Ended March 31
	2017		2016
Residential:
Video	44.7	%	45.4	%
High-speed Internet	27.9	%	26.8	%
Voice	6.7	%	7.3	%
Business services	11.5	%	10.7	%
Advertising	4.0	%	4.5	%
Other	5.2	%	5.3	%
Total	100.0	%	100.0	%

Subscription revenue received from customers who purchase bundled services at a discounted rate is allocated proportionally to each cable service based on the individual service’s price on a stand-alone basis.

For the three months ended March 31, 2017 and 2016, 2.8% and 2.9%, respectively, of Cable Communications segment revenue was derived from franchise and other regulatory fees.


(b)	NBCUniversal Headquarters and Other activities include costs associated with overhead, allocations, personnel costs and headquarter initiatives.


(c)	Included in Eliminations are transactions that our segments enter into with one another. The most common types of transactions are the following:


•	our Cable Networks segment generates revenue by selling programming to our Cable Communications segment, which represents a substantial majority of the revenue elimination amount


•	our Broadcast Television segment generates revenue from the fees received under retransmission consent agreements with our Cable Communications segment


•	our Cable Communications segment generates revenue by selling advertising and by selling the use of satellite feeds to our Cable Networks segment


•	our Filmed Entertainment and Broadcast Television segments generate revenue from the licensing of film and television content to our Cable Networks segment


(d)	Corporate and Other activities include costs associated with overhead and personnel, the costs of corporate initiatives and branding, including our new wireless phone service, and the operations of Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania and operates arena management-related businesses.


(e)	No single customer accounted for a significant amount of revenue in any period.

(f)

We use Adjusted EBITDA as the measure of profit or loss for our operating segments. Adjusted EBITDA is defined as net income attributable to Comcast Corporation before net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock, income tax expense, other income (expense) items, net, and depreciation and amortization, and excluding impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets, if any. Other income (expense) items, net include interest expense, investment income (loss), equity in net income (losses) of investees, and other income (expense), net (as stated in our condensed consolidated statement of income). This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. Additionally, it is unaffected by our capital and tax structures and by our investment activities. We use this measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. We believe that this measure is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure may not be directly comparable to similar measures used by other companies. This measure should not be considered a substitute for operating income (loss), net income (loss), net income (loss) attributable to Comcast Corporation, net cash provided by operating activities, or other measures of performance or liquidity we have reported in accordance with GAAP. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated income before income taxes is presented in the table below.



	Three Months Ended March 31
(in millions)	2017			2016
Adjusted EBITDA	$	7,032		$	6,367
Depreciation	(1,915		)	(1,785		)
Amortization	(587		)	(493		)
Other income (expense) items, net	(625		)	(554		)
Income before income taxes	$	3,905		$	3,535

Table of Contents

Comcast Corporation

Note 12: Condensed Consolidating Financial Information

Comcast (“Comcast Parent”), Comcast Cable Communications, LLC (“CCCL Parent”), and NBCUniversal (“NBCUniversal Media Parent”) have fully and unconditionally guaranteed each other’s debt securities, including the Comcast revolving credit facility.

Comcast Parent and CCCL Parent also fully and unconditionally guarantee NBCUniversal Enterprise’s $3.3 billion principal amount of senior notes, revolving credit facility and commercial paper program. NBCUniversal Media Parent does not guarantee the NBCUniversal Enterprise senior notes, revolving credit facility or commercial paper program.

Comcast Parent provides an unconditional subordinated guarantee of the $185 million principal amount currently outstanding of Comcast Holdings’ ZONES due October 2029. Neither CCCL Parent nor NBCUniversal Media Parent guarantee the Comcast Holdings’ ZONES due October 2029. None of Comcast Parent, CCCL Parent nor NBCUniversal Media Parent guarantee the $62 million principal amount currently outstanding of Comcast Holdings’ ZONES due November 2029 or the $3.4 billion of Universal Studios Japan term loans.

Table of Contents

Comcast Corporation

Condensed Consolidating Balance Sheet

March 31, 2017



(in millions)	Comcast Parent		Comcast Holdings		CCCL Parent		NBCUniversal Media Parent		Non- Guarantor Subsidiaries		Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Assets
Cash and cash equivalents	$	—	$	—	$	—	$	270	$	3,752	$	—		$	4,022
Receivables, net	—		—		—		—		7,525		—			7,525
Programming rights	—		—		—		—		1,479		—			1,479
Other current assets	96		—		—		60		2,063		—			2,219
Total current assets	96		—		—		330		14,819		—			15,245
Film and television costs	—		—		—		—		6,968		—			6,968
Investments	84		—		10		657		5,187		—			5,938
Investments in and amounts due from subsidiaries eliminated upon consolidation	100,103		123,806		120,362		49,537		104,918		(498,726		)	—
Property and equipment, net	364		—		—		—		36,262		—			36,626
Franchise rights	—		—		—		—		59,364		—			59,364
Goodwill	—		—		—		—		36,592		—			36,592
Other intangible assets, net	12		—		—		—		19,002		—			19,014
Other noncurrent assets, net	1,115		666		—		80		1,876		(1,005		)	2,732
Total assets	$	101,774	$	124,472	$	120,372	$	50,604	$	284,988	$	(499,731	)	$	182,479
Liabilities and Equity
Accounts payable and accrued expenses related to trade creditors	$	17	$	—	$	—	$	—	$	6,641	$	—		$	6,658
Accrued participations and residuals	—		—		—		—		1,811		—			1,811
Accrued expenses and other current liabilities	1,582		—		211		361		4,942		—			7,096
Current portion of long-term debt	1,905		—		550		4		1,050		—			3,509
Total current liabilities	3,504		—		761		365		14,444		—			19,074
Long-term debt, less current portion	40,711		143		2,100		8,204		7,118		—			58,276
Deferred income taxes	—		524		—		69		35,760		(1,005		)	35,348
Other noncurrent liabilities	2,500		—		—		1,103		7,074		—			10,677
Redeemable noncontrolling interests and redeemable subsidiary preferred stock	—		—		—		—		1,456		—			1,456
Equity:
Common stock	56		—		—		—		—		—			56
Other shareholders’ equity	55,003		123,805		117,511		40,863		216,547		(498,726		)	55,003
Total Comcast Corporation shareholders’ equity	55,059		123,805		117,511		40,863		216,547		(498,726		)	55,059
Noncontrolling interests	—		—		—		—		2,589		—			2,589
Total equity	55,059		123,805		117,511		40,863		219,136		(498,726		)	57,648
Total liabilities and equity	$	101,774	$	124,472	$	120,372	$	50,604	$	284,988	$	(499,731	)	$	182,479

Table of Contents

Comcast Corporation

Condensed Consolidating Balance Sheet

December 31, 2016



(in millions)	Comcast Parent		Comcast Holdings		CCCL Parent		NBCUniversal Media Parent		Non- Guarantor Subsidiaries		Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Assets
Cash and cash equivalents	$	—	$	—	$	—	$	482	$	2,819	$	—		$	3,301
Receivables, net	—		—		—		—		7,955		—			7,955
Programming rights	—		—		—		—		1,250		—			1,250
Other current assets	151		—		—		36		3,668		—			3,855
Total current assets	151		—		—		518		15,692		—			16,361
Film and television costs	—		—		—		—		7,252		—			7,252
Investments	75		—		—		651		4,521		—			5,247
Investments in and amounts due from subsidiaries eliminated upon consolidation	98,350		120,071		117,696		47,393		97,704		(481,214		)	—
Property and equipment, net	298		—		—		—		35,955		—			36,253
Franchise rights	—		—		—		—		59,364		—			59,364
Goodwill	—		—		—		—		35,980		—			35,980
Other intangible assets, net	13		—		—		—		17,261		—			17,274
Other noncurrent assets, net	1,138		638		—		89		1,921		(1,017		)	2,769
Total assets	$	100,025	$	120,709	$	117,696	$	48,651	$	275,650	$	(482,231	)	$	180,500
Liabilities and Equity
Accounts payable and accrued expenses related to trade creditors	$	23	$	—	$	—	$	—	$	6,892	$	—		$	6,915
Accrued participations and residuals	—		—		—		—		1,726		—			1,726
Accrued expenses and other current liabilities	1,726		—		341		302		5,045		—			7,414
Current portion of long-term debt	3,739		—		550		4		1,187		—			5,480
Total current liabilities	5,488		—		891		306		14,850		—			21,535
Long-term debt, less current portion	38,123		141		2,100		8,208		6,994		—			55,566
Deferred income taxes	—		542		—		70		35,259		(1,017		)	34,854
Other noncurrent liabilities	2,471		—		—		1,166		7,288		—			10,925
Redeemable noncontrolling interests and redeemable subsidiary preferred stock	—		—		—		—		1,446		—			1,446
Equity:
Common stock	56		—		—		—		—		—			56
Other shareholders’ equity	53,887		120,026		114,705		38,901		207,582		(481,214		)	53,887
Total Comcast Corporation shareholders’ equity	53,943		120,026		114,705		38,901		207,582		(481,214		)	53,943
Noncontrolling interests	—		—		—		—		2,231		—			2,231
Total equity	53,943		120,026		114,705		38,901		209,813		(481,214		)	56,174
Total liabilities and equity	$	100,025	$	120,709	$	117,696	$	48,651	$	275,650	$	(482,231	)	$	180,500

Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Income

For the Three Months Ended March 31, 2017



(in millions)	Comcast Parent			Comcast Holdings			CCCL Parent			NBCUniversal Media Parent			Non- Guarantor Subsidiaries			Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Revenue:
Service revenue	$	—		$	—		$	—		$	—		$	20,463		$	—		$	20,463
Management fee revenue	275			—			270			—			—			(545		)	—
	275			—			270			—			20,463			(545		)	20,463
Costs and Expenses:
Programming and production	—			—			—			—			6,074			—			6,074
Other operating and administrative	170			—			270			306			5,626			(545		)	5,827
Advertising, marketing and promotion	—			—			—			—			1,530			—			1,530
Depreciation	7			—			—			—			1,908			—			1,915
Amortization	2			—			—			—			585			—			587
	179			—			270			306			15,723			(545		)	15,933
Operating income (loss)	96			—			—			(306		)	4,740			—			4,530
Other Income (Expense):
Interest expense	(517		)	(3		)	(60		)	(112		)	(63		)	—			(755		)
Investment income (loss), net	1			28			—			(4		)	34			—			59
Equity in net income (losses) of investees, net	2,839			2,650			2,320			1,597			1,236			(10,606		)	36
Other income (expense), net	—			—			—			28			7			—			35
	2,323			2,675			2,260			1,509			1,214			(10,606		)	(625		)
Income (loss) before income taxes	2,419			2,675			2,260			1,203			5,954			(10,606		)	3,905
Income tax (expense) benefit	147			(9		)	21			(3		)	(1,414		)	—			(1,258		)
Net income (loss)	2,566			2,666			2,281			1,200			4,540			(10,606		)	2,647
Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock	—			—			—			—			(81		)	—			(81		)
Net income (loss) attributable to Comcast Corporation	$	2,566		$	2,666		$	2,281		$	1,200		$	4,459		$	(10,606	)	$	2,566
Comprehensive income (loss) attributable to Comcast Corporation	$	2,810		$	2,716		$	2,282		$	1,406		$	4,703		$	(11,107	)	$	2,810

Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Income

For the Three Months Ended March 31, 2016



(in millions)	Comcast Parent			Comcast Holdings			CCCL Parent			NBCUniversal Media Parent			Non- Guarantor Subsidiaries			Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Revenue:
Service revenue	$	—		$	—		$	—		$	—		$	18,790		$	—		$	18,790
Management fee revenue	259			—			254			—			—			(513		)	—
	259			—			254			—			18,790			(513		)	18,790
Costs and Expenses:
Programming and production	—			—			—			—			5,431			—			5,431
Other operating and administrative	156			—			254			295			5,334			(513		)	5,526
Advertising, marketing and promotion	—			—			—			—			1,466			—			1,466
Depreciation	8			—			—			—			1,777			—			1,785
Amortization	1			—			—			—			492			—			493
	165			—			254			295			14,500			(513		)	14,701
Operating income (loss)	94			—			—			(295		)	4,290			—			4,089
Other Income (Expense):
Interest expense	(451		)	(3		)	(59		)	(117		)	(73		)	—			(703		)
Investment income (loss), net	—			—			—			(2		)	32			—			30
Equity in net income (losses) of investees, net	2,366			2,264			2,114			1,297			991			(9,043		)	(11		)
Other income (expense), net	—			—			—			124			6			—			130
	1,915			2,261			2,055			1,302			956			(9,043		)	(554		)
Income (loss) before income taxes	2,009			2,261			2,055			1,007			5,246			(9,043		)	3,535
Income tax (expense) benefit	125			1			21			(5		)	(1,453		)	—			(1,311		)
Net income (loss)	2,134			2,262			2,076			1,002			3,793			(9,043		)	2,224
Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock	—			—			—			—			(90		)	—			(90		)
Net income (loss) attributable to Comcast Corporation	$	2,134		$	2,262		$	2,076		$	1,002		$	3,703		$	(9,043	)	$	2,134
Comprehensive income (loss) attributable to Comcast Corporation	$	2,224		$	2,306		$	2,078		$	1,146		$	3,705		$	(9,235	)	$	2,224

Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2017



(in millions)	Comcast Parent			Comcast Holdings			CCCL Parent			NBCUniversal Media Parent			Non- Guarantor Subsidiaries			Elimination and Consolidation Adjustments		Consolidated Comcast Corporation
Net cash provided by (used in) operating activities	$	(453	)	$	(10	)	$	(168	)	$	(330	)	$	6,617		$	—	$	5,656
Investing Activities
Net transactions with affiliates	1,385			10			168			115			(1,678		)	—		—
Capital expenditures	(1		)	—			—			—			(2,077		)	—		(2,078		)
Cash paid for intangible assets	—			—			—			—			(416		)	—		(416		)
Acquisitions and construction of real estate properties	(69		)	—			—			—			(61		)	—		(130		)
Acquisitions, net of cash acquired	—			—			—			—			(216		)	—		(216		)
Proceeds from sales of investments	—			—			—			10			41			—		51
Purchases of investments	(9		)	—			—			(4		)	(1,049		)	—		(1,062		)
Other	55			—			—			—			2			—		57
Net cash provided by (used in) investing activities	1,361			10			168			121			(5,454		)	—		(3,794		)
Financing Activities
Proceeds from (repayments of) short-term borrowings, net	(1,739		)	—			—			—			(154		)	—		(1,893		)
Proceeds from borrowings	3,500			—			—			—			—			—		3,500
Repurchases and repayments of debt	(1,000		)	—			—			(3		)	(56		)	—		(1,059		)
Repurchases of common stock under repurchase program and employee plans	(996		)	—			—			—			—			—		(996		)
Dividends paid	(657		)	—			—			—			—			—		(657		)
Issuances of common stock	—			—			—			—			—			—		—
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock	—			—			—			—			(72		)	—		(72		)
Other	(16		)	—			—			—			52			—		36
Net cash provided by (used in) financing activities	(908		)	—			—			(3		)	(230		)	—		(1,141		)
Increase (decrease) in cash and cash equivalents	—			—			—			(212		)	933			—		721
Cash and cash equivalents, beginning of period	—			—			—			482			2,819			—		3,301
Cash and cash equivalents, end of period	$	—		$	—		$	—		$	270		$	3,752		$	—	$	4,022

Table of Contents

Comcast Corporation

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2016



(in millions)	Comcast Parent			Comcast Holdings		CCCL Parent			NBCUniversal Media Parent			Non- Guarantor Subsidiaries			Elimination and Consolidation Adjustments		Consolidated Comcast Corporation
Net cash provided by (used in) operating activities	$	(201	)	$	—	$	78		$	(391	)	$	5,913		$	—	$	5,399
Investing Activities
Net transactions with affiliates	(679		)	—		(78		)	63			694			—		—
Capital expenditures	(3		)	—		—			—			(1,882		)	—		(1,885		)
Cash paid for intangible assets	—			—		—			—			(378		)	—		(378		)
Acquisitions and construction of real estate properties	—			—		—			—			(140		)	—		(140		)
Acquisitions, net of cash acquired	—			—		—			—			(24		)	—		(24		)
Proceeds from sales of investments	—			—		—			101			9			—		110
Purchases of investments	(7		)	—		—			—			(441		)	—		(448		)
Other	7			—		—			(5		)	54			—		56
Net cash provided by (used in) investing activities	(682		)	—		(78		)	159			(2,108		)	—		(2,709		)
Financing Activities
Proceeds from (repayments of) short-term borrowings, net	(400		)	—		—			—			(138		)	—		(538		)
Proceeds from borrowings	3,323			—		—			—			—			—		3,323
Repurchases and repayments of debt	—			—		—			(4		)	(44		)	—		(48		)
Repurchases of common stock under repurchase program and employee plans	(1,427		)	—		—			—			—			—		(1,427		)
Dividends paid	(611		)	—		—			—			—			—		(611		)
Issuances of common stock	12			—		—			—			—			—		12
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock	—			—		—			—			(77		)	—		(77		)
Other	(14		)	—		—			—			23			—		9
Net cash provided by (used in) financing activities	883			—		—			(4		)	(236		)	—		643
Increase (decrease) in cash and cash equivalents	—			—		—			(236		)	3,569			—		3,333
Cash and cash equivalents, beginning of period	—			—		—			414			1,881			—		2,295
Cash and cash equivalents, end of period	$	—		$	—	$	—		$	178		$	5,450		$	—	$	5,628

Table of Contents

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

We are a global media and technology company with two primary businesses, Comcast Cable and NBCUniversal. We present our operations for Comcast Cable in one reportable business segment, referred to as Cable Communications, and our operations for NBCUniversal in four reportable business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks (collectively, the “NBCUniversal segments”).

Cable Communications Segment

Comcast Cable is one of the nation’s largest providers of video, high-speed Internet, voice, and security and automation services (“cable services”) to residential customers under the XFINITY brand; we also provide these and other services to business customers and sell advertising. As of March 31, 2017, our cable systems had 28.9 million total customer relationships, including 26.8 million residential and 2.1 million business customer relationships, and passed more than 56 million homes and businesses. Our Cable Communications segment generates revenue primarily from residential and business customers that subscribe to our cable services, which we market individually and as bundled services, and from the sale of advertising. During the three months ended March 31, 2017, our Cable Communications segment generated 63% of our consolidated revenue and 74% of the aggregate Adjusted EBITDA for our reportable business segments.

NBCUniversal Segments

NBCUniversal is one of the world’s leading media and entertainment companies that develops, produces and distributes entertainment, news and information, sports, and other content for global audiences, and owns and operates theme parks worldwide.

Cable Networks

Our Cable Networks segment consists primarily of a diversified portfolio of cable television networks. Our cable networks are comprised of our national cable networks that provide a variety of entertainment, news and information, and sports content; our regional sports and news networks; our international cable networks; our cable television studio production operations; and related digital media properties. Our Cable Networks segment generates revenue primarily from the distribution of our cable network programming to traditional and virtual multichannel video providers, from the sale of advertising on our cable networks and related digital media properties, from the licensing of our owned programming to cable and broadcast networks and subscription video on demand services, from the sale of our owned programming on standard-definition digital video discs and Blu-ray discs (together, “DVDs”) and through digital distribution services such as iTunes, and from the licensing of programming by our cable television studio production operations to third-party networks and subscription video on demand services.

Broadcast Television

Our Broadcast Television segment consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo owned local broadcast television stations, the NBC Universo national cable network, our broadcast television studio production operations, and related digital media properties. Our Broadcast Television segment generates revenue primarily from the sale of advertising on our broadcast networks, owned local broadcast television stations and related digital media properties; from the licensing of our owned programming by our broadcast television studio production operations to various distribution platforms, including to cable and broadcast networks as well as to subscription video on demand services; from the fees received under retransmission consent agreements and associated fees received from NBC-affiliated local broadcast television stations; and from the sale of our owned programming on DVDs and through digital distribution services.

Filmed Entertainment

Our Filmed Entertainment segment primarily produces, acquires, markets and distributes filmed entertainment worldwide, and it also develops, produces and licenses live stage plays. Our films are produced primarily under the Universal Pictures, Illumination, Focus Features and DreamWorks Animation names. Our Filmed Entertainment segment generates revenue primarily from the worldwide distribution of our produced and acquired films for exhibition in movie theaters, from the licensing of produced and acquired films through various distribution platforms, and from the sale of produced and acquired films on DVDs and through digital distribution services. Our Filmed Entertainment segment also generates revenue from producing and licensing live stage plays, from the distribution of filmed entertainment produced by third parties, and from Fandango, our movie ticketing and entertainment business.

Table of Contents

Theme Parks

Our Theme Parks segment consists primarily of our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. In addition, along with a consortium of Chinese state-owned companies, we are developing a theme park in China. Our Theme Parks segment generates revenue primarily from ticket sales and guest spending at our Universal theme parks.

Corporate and Other

Our other business interests consist primarily of the operations of Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania and operates arena management-related businesses.

We are also pursuing other business initiatives, such as a wireless phone service that we expect to launch in mid-2017 on a small scale to our residential cable customers using our virtual network operator rights to provide the service over Verizon’s wireless network and our existing network of in-home and outdoor Wi-Fi hotspots. We will offer the wireless phone service only as part of our bundled service offerings to residential customers subscribing to our high-speed Internet service within our cable distribution footprint, and may in the future also offer wireless phone service to our small business customers on similar terms. The wireless phone service will have success-based working capital requirements, primarily associated with the procurement of handsets, which customers will be able to pay for upfront or finance interest-free over 24 months, and other equipment.

Competition

The results of operations of our reportable business segments are affected by competition, as all of our businesses operate in intensely competitive, consumer-driven and rapidly changing environments and compete with a growing number of companies that provide a broad range of communications products and services, and entertainment, news and information products and services, to consumers. For additional information on the competition our businesses face, see Item 1: Business included in our 2016 Annual Report on Form 10-K and refer to the “Competition” discussion within that section and see Item 1A: Risk Factors included in our 2016 Annual Report on Form 10-K and refer to the risk factors within that section entitled “Our businesses currently face a wide range of competition, and our businesses and results of operations could be adversely affected if we do not compete effectively” and “Changes in consumer behavior driven by new technologies and distribution platforms for viewing content may adversely affect our businesses and challenge existing business models.”

Seasonality and Cyclicality

Each of our businesses is subject to seasonal and cyclical variations. In our Cable Communications segment, our results are impacted by the seasonal nature of customers receiving our cable services in college and vacation markets. This generally results in a reduction in net customer additions in the second quarter and an increase in net customer additions in the third and fourth quarters of each year.

Revenue in our Cable Communications, Cable Networks and Broadcast Television segments is subject to cyclical advertising patterns and changes in viewership levels. Advertising revenue in the U.S. is generally higher in the second and fourth quarters of each year, due in part to increases in consumer advertising in the spring and in the period leading up to and including the holiday season. Advertising revenue in the U.S. is also cyclical, with a benefit in even-numbered years due to advertising related to candidates running for political office and issue-oriented advertising. Revenue in our Cable Networks and Broadcast Television segments fluctuates depending on the timing of when our programming is aired, which typically results in higher advertising revenue in the second and fourth quarters of each year. Our revenue and operating costs and expenses, excluding depreciation and amortization (“operating costs and expenses”) are cyclical as a result of our periodic broadcasts of major sporting events, such as the Olympic Games, which affect our Cable Networks and Broadcast Television segments, and the Super Bowl, which affects our Broadcast Television segment. Our advertising revenue increases in the period of these broadcasts due to increased demand for advertising time, and our operating costs and expenses also increase as a result of our production costs and the amortization of the related rights fees.

Revenue in our Filmed Entertainment segment fluctuates due to the timing of the release of films in movie theaters, on DVDs and through various other distribution platforms. Release dates are determined by several factors, including competition and the timing of vacation and holiday periods. As a result, revenue tends to be seasonal, with increases experienced each year during the summer months and around the holiday season. Revenue in our Cable Networks, Broadcast Television and Filmed Entertainment segments also fluctuates due to the timing of when our content is made available to licensees.

Revenue in our Theme Parks segment fluctuates with changes in theme park attendance that result from the seasonal nature of vacation travel and weather variations, local entertainment offerings and the opening of new attractions, as well as with changes in currency exchange rates. Our theme parks generally experience peak attendance during the spring holiday period, the summer months when schools are closed and the holiday season.

Table of Contents

Consolidated Operating Results



	Three Months Ended March 31						Increase/ (Decrease)
(in millions)	2017			2016
Revenue	$	20,463		$	18,790		8.9	%
Costs and Expenses:
Programming and production	6,074			5,431			11.8
Other operating and administrative	5,827			5,526			5.4
Advertising, marketing and promotion	1,530			1,466			4.4
Depreciation	1,915			1,785			7.3
Amortization	587			493			19.0
Operating income	4,530			4,089			10.8
Other income (expense) items, net	(625		)	(554		)	13.0
Income before income taxes	3,905			3,535			10.4
Income tax expense	(1,258		)	(1,311		)	(4.1	)
Net income	2,647			2,224			19.0
Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock	(81		)	(90		)	(10.2	)
Net income attributable to Comcast Corporation	$	2,566		$	2,134		20.2	%

All percentages are calculated based on actual amounts. Minor differences may exist due to rounding.

Consolidated Revenue

All of our reportable business segments accounted for the increase in consolidated revenue for the three months ended March 31, 2017.

Revenue for our segments is discussed separately below under the heading “Segment Operating Results.” Revenue for our other businesses is discussed separately below under the heading “Corporate and Other Results of Operations.”

Consolidated Costs and Expenses

Our Cable Communications, Broadcast Television, Filmed Entertainment and Theme Parks segments accounted for substantially all of the increase in consolidated operating costs and expenses for the three months ended March 31, 2017.

Operating costs and expenses for our segments are discussed separately below under the heading “Segment Operating Results.” Operating costs and expenses for our corporate and other businesses are discussed separately below under the heading “Corporate and Other Results of Operations.”

Consolidated Depreciation and Amortization



	Three Months Ended March 31				Increase/ (Decrease)
(in millions)	2017		2016
Cable Communications	$	1,980	$	1,843	7.4	%
NBCUniversal	508		414		22.8
Corporate and Other	14		21		(35.0	)
Total	$	2,502	$	2,278	9.8	%

Consolidated depreciation and amortization expense increased for the three months ended March 31, 2017 primarily due to increases in capital expenditures, as well as expenditures for software, in our Cable Communications segment in recent years. We continue to invest to increase our network capacity and in customer premise equipment, primarily for our X1 platform and cloud DVR technology and for wireless gateways. In addition, because these assets generally have shorter estimated useful lives, our depreciation expenses increased for the three months ended March 31, 2017. NBCUniversal depreciation and amortization expense also increased due to our investments in new attractions in our Theme Parks segment.

Table of Contents

Segment Operating Results

Our segment operating results are presented based on how we assess operating performance and internally report financial information. We use Adjusted EBITDA (formerly operating income before depreciation and amortization) as the measure of profit or loss for our operating segments. Adjusted EBITDA is defined as net income attributable to Comcast Corporation before net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock, income tax expense, other income (expense) items, net, and depreciation and amortization, and excluding impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets, if any. Other income (expense) items, net include interest expense, investment income (loss), equity in net income (losses) of investees, and other income (expense), net (as stated in our condensed consolidated statement of income). This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. Additionally, it is unaffected by our capital and tax structures and by our investment activities. We use this measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. We believe that this measure is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure may not be directly comparable to similar measures used by other companies. We reconcile the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated income before income taxes in the business segment footnote to our condensed consolidated financial statements (see Note 11 to Comcast’s condensed consolidated financial statements and Note 10 to NBCUniversal’s condensed consolidated financial statements). This measure should not be considered a substitute for operating income (loss), net income (loss), net income (loss) attributable to Comcast Corporation or NBCUniversal, net cash provided by operating activities, or other measures of performance or liquidity we have reported in accordance with generally accepted accounting principles in the United States.

To be consistent with our current management reporting presentation, certain 2016 operating results were reclassified within the Cable Communications segment.

Cable Communications Segment Results of Operations



	Three Months Ended March 31				Increase/ (Decrease)
(in millions)	2017		2016		$			%
Revenue
Residential:
Video	$	5,774	$	5,538	$	236		4.3	%
High-speed Internet	3,606		3,275		331			10.1
Voice	863		896		(33		)	(3.6	)
Business services	1,490		1,311		179			13.6
Advertising	512		546		(34		)	(6.3	)
Other	667		638		29			4.4
Total revenue	12,912		12,204		708			5.8
Operating costs and expenses
Programming	3,228		2,891		337			11.7
Technical and product support	1,560		1,518		42			2.8
Customer service	621		628		(7		)	(1.1	)
Advertising, marketing and promotion	859		836		23			2.8
Franchise and other regulatory fees	381		365		16			4.4
Other	1,065		1,077		(12		)	(1.1	)
Total operating costs and expenses	7,714		7,315		399			5.5
Adjusted EBITDA	$	5,198	$	4,889	$	309		6.3	%

Table of Contents

Customer Metrics



	Total Customers				Net Additional Customers
	March 31				Three Months Ended March 31
(in thousands, except per customer amounts)	2017		2016		2017		2016
Video
Video residential customers	21,520		21,422		32		37
Video business services customers	1,030		978		10		16
Total video customers	22,549		22,400		42		53
High-Speed Internet
High-speed Internet residential customers	23,224		22,013		397		403
High-speed Internet business services customers	1,907		1,754		32		35
Total high-speed Internet customers	25,131		23,767		429		438
Voice
Voice residential customers	10,520		10,516		(27	)	80
Voice business services customers	1,162		1,061		22		22
Total voice customers	11,681		11,577		(5	)	102
Security and Automation
Security and automation customers	957		668		66		56

Customer Relationships
Residential customer relationships	26,797		26,065		263		237
Business services customer relationships	2,078		1,921		34		34
Total customer relationships	28,875		27,986		297		271
Residential customer relationships mix
Single product customers	7,861		7,681		104		34
Double product customers	8,938		8,572		141		94
Triple and quad product customers	9,998		9,812		18		109
Average monthly total revenue per customer relationship	$	149.83	$	146.07

Customer metrics are presented based on actual amounts. Minor differences may exist due to rounding. Beginning in 2017, we include prepaid customers, which are customers who prepay for at least 30 days of service, in our customer metrics. Residential video and high-speed Internet total customers as of March 31, 2017 included 2,000 and 21,000, respectively, prepaid customers. Customer relationships represent the number of residential and business customers that subscribe to at least one of our cable services. Single product, double product, and triple and quad product customers represent residential customers that subscribe to one, two, or three and four of our cable services, respectively. In 2017, we began including customers subscribing to our security and automation services in customer relationship information. All periods presented have been adjusted for the inclusion of security and automation customers.

Cable Communications Segment—Revenue

Video

Video revenue increased 4.3% for the three months ended March 31, 2017 compared to the same period in 2016. The primary contributors to revenue growth were rate adjustments and an increase in the number of residential customers subscribing to additional services such as premium channels and advanced services. These contributors accounted for an increase in revenue of 3.8% for the three months ended March 31, 2017. We have in the past, and may in the future, experience declines in the number of residential video customers due to competitive pressures and the impact of rate adjustments.

High-Speed Internet

High-speed Internet revenue increased 10.1% for the three months ended March 31, 2017 compared to the same period in 2016. An increase in the number of residential customers receiving our high-speed Internet services accounted for an increase in revenue of 5.5% for the three months ended March 31, 2017. The remaining increase in revenue for the three months ended March 31, 2017 was primarily due to an increase in the number of customers receiving higher levels of service and the impact of rate adjustments. Our customer base continues to grow as consumers choose our high-speed Internet services and seek higher-speed offerings.

Voice

Voice revenue decreased 3.6% for the three months ended March 31, 2017 compared to the same period in 2016. The decrease was primarily due to the allocation of voice revenue for our customers who received bundled services. The amount allocated to

Table of Contents

voice revenue in the rate charged for bundled services decreased for the three months ended March 31, 2017 because video and high-speed Internet rates increased while voice rates remained relatively flat.

Business Services

Business services revenue increased 13.6% for the three months ended March 31, 2017 compared to the same period in 2016. The increase was primarily due to an increase in the number of small business customers, as well as continued growth in our medium-sized business services, including Ethernet network and advanced voice services. We believe the increase in the number of business customers is primarily the result of our efforts to gain market share from competitors by offering competitive services and pricing, although the rate of growth in the number of our small business customers may slow as the business matures.

Advertising

Advertising revenue decreased 6.3% for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to a decrease in political advertising revenue. Excluding political advertising revenue, advertising revenue decreased 2.3% for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to decreases in national and local advertising markets.

For both the three months ended March 31, 2017 and 2016, 5% of our Cable Communications segment advertising revenue was generated from our NBCUniversal segments. These amounts are eliminated in our condensed consolidated financial statements but are included in the amounts presented above.

Other

Other revenue increased 4.4% for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to an increase in revenue from our security and automation services and an increase in cable franchise and other regulatory fees.

Cable Communications Segment—Operating Costs and Expenses

Programming expenses increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to the timing of contract renewals and other increases in programming license fees, including retransmission consent fees and sports programming costs.

Technical and product support expenses increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to expenses related to the development, delivery and support of our X1 platform, cloud DVR technology and wireless gateways, and the continued growth in business services and security and automation services. The increase was also due to expenses related to investments to improve the customer experience.

Customer service expenses decreased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to reduced call volumes.

Advertising, marketing and promotion expenses increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to an increase in spending associated with attracting new customers and encouraging existing customers to add additional or higher-tier services.

Franchise and other regulatory fees increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to an increase in the revenue to which the fees apply.

Other costs and expenses decreased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to higher administrative costs in the prior year period.

Cable Communications Segment—Operating Margin

Our Cable Communications segment operating margin is Adjusted EBITDA as a percentage of revenue. The most significant operating costs and expenses for our Cable Communications segment are the programming expenses we incur to provide content to our video customers. We expect that our programming expenses will continue to increase, which may negatively impact our operating margin. We will attempt to mitigate increases in operating costs and expenses by growing revenue, particularly in our high-speed Internet, video and business services businesses and through cost management.

Our operating margin for the three months ended March 31, 2017 and 2016 was 40.3% and 40.1%, respectively.

Table of Contents

NBCUniversal Segments Results of Operations



	Three Months Ended March 31						Increase/ (Decrease)
(in millions)	2017			2016			$			%
Revenue
Cable Networks	$	2,641		$	2,453		$	188		7.6	%
Broadcast Television	2,208			2,084			124			5.9
Filmed Entertainment	1,981			1,383			598			43.2
Theme Parks	1,118			1,026			92			9.0
Headquarters, other and eliminations	(80		)	(85		)	5			NM
Total revenue	$	7,868		$	6,861		$	1,007		14.7	%
Adjusted EBITDA
Cable Networks	$	1,116		$	956		$	160		16.8	%
Broadcast Television	322			284			38			13.4
Filmed Entertainment	368			167			201			120.6
Theme Parks	397			375			22			6.1
Headquarters, other and eliminations	(186		)	(160		)	(26		)	NM
Total Adjusted EBITDA	$	2,017		$	1,622		$	395		24.4	%

Percentage changes that are considered not meaningful are denoted with NM.

Cable Networks Segment Results of Operations



	Three Months Ended March 31				Increase/ (Decrease)
(in millions)	2017		2016		$			%
Revenue
Distribution	$	1,562	$	1,438	$	124		8.6	%
Advertising	826		851		(25		)	(2.9	)
Content licensing and other	253		164		89			54.0
Total revenue	2,641		2,453		188			7.6
Operating costs and expenses
Programming and production	1,083		1,058		25			2.3
Other operating and administrative	321		307		14			4.4
Advertising, marketing and promotion	121		132		(11		)	(8.4	)
Total operating costs and expenses	1,525		1,497		28			1.8
Adjusted EBITDA	$	1,116	$	956	$	160		16.8	%

Cable Networks Segment—Revenue

Cable Networks revenue increased for the three months ended March 31, 2017 compared to the same period in 2016 due to increases in distribution revenue and content licensing and other revenue, which were partially offset by a decrease in advertising revenue. The increase in distribution revenue was primarily due to increases in the contractual rates charged under distribution agreements and the timing of contract renewals, which were partially offset by a decline in the number of subscribers at our cable networks. The increase in content licensing and other revenue was primarily due to a new content licensing agreement, as well as the timing of content provided under our existing licensing agreements. The decrease in advertising revenue was primarily due to continued declines in audience ratings at our networks, which were partially offset by higher prices for advertising units sold.

For both the three months ended March 31, 2017 and 2016, 15% of our Cable Networks segment revenue was generated from our Cable Communications segment. These amounts are eliminated in our condensed consolidated financial statements but are included in the amounts presented above.

Table of Contents

Cable Networks Segment—Operating Costs and Expenses

Operating costs and expenses increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to increases in programming and production costs and other operating and administrative expenses, which were partially offset by a decrease in advertising, marketing and promotion expenses. The increase in programming and production costs was primarily due to our continued investment in original programming and an increase in sports programming rights costs. The increase in other operating and administrative expenses was primarily due to an increase in employee-related costs.

Broadcast Television Segment Results of Operations



	Three Months Ended March 31				Increase/ (Decrease)
(in millions)	2017		2016		$			%
Revenue
Advertising	$	1,279	$	1,275	$	4		0.3	%
Content licensing	503		490		13			2.6
Distribution and other	426		319		107			33.4
Total revenue	2,208		2,084		124			5.9
Operating costs and expenses
Programming and production	1,432		1,363		69			5.0
Other operating and administrative	336		318		18			5.6
Advertising, marketing and promotion	118		119		(1		)	(0.6	)
Total operating costs and expenses	1,886		1,800		86			4.8
Adjusted EBITDA	$	322	$	284	$	38		13.4	%

Broadcast Television Segment—Revenue

Broadcast Television revenue increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to increases in distribution and other revenue and content licensing revenue. The increase in distribution and other revenue was primarily due to increases in fees recognized under our retransmission consent agreements. The increase in content licensing revenue was primarily due to the timing of content provided under our new and existing licensing agreements. Advertising revenue increased slightly due to higher prices for advertising units sold, which was offset by declines in audience ratings and a decrease in the volume of advertising units sold.

Broadcast Television Segment—Operating Costs and Expenses

Operating costs and expenses increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to increases in programming and production costs and other operating and administrative expenses. The increase in programming and production costs was primarily due to higher studio production costs. The increase in other operating and administrative costs and expenses was primarily due to an increase in employee-related costs.

Table of Contents

Filmed Entertainment Segment Results of Operations



	Three Months Ended March 31				Increase/ (Decrease)
(in millions)	2017		2016		$		%
Revenue
Theatrical	$	651	$	236	$	415	176.2	%
Content licensing	731		652		79		12.1
Home entertainment	299		275		24		8.8
Other	300		220		80		35.9
Total revenue	1,981		1,383		598		43.2
Operating costs and expenses
Programming and production	875		622		253		40.7
Other operating and administrative	330		209		121		57.0
Advertising, marketing and promotion	408		385		23		6.2
Total operating costs and expenses	1,613		1,216		397		32.6
Adjusted EBITDA	$	368	$	167	$	201	120.6	%

Filmed Entertainment Segment—Revenue

Filmed Entertainment revenue increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to an increase in theatrical revenue, as well as increases in other revenue, content licensing revenue and home entertainment revenue. The increase in theatrical revenue was primarily due to the strong performances of Fifty Shades Darker, Sing, Split and Get Out in the current year period. Other revenue and content licensing revenue increased primarily due to the inclusion of DreamWorks Animation in the current year period.

Filmed Entertainment Segment—Operating Costs and Expenses

Operating costs and expenses increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to an increase in programming and production costs, as well as increases in other operating and administrative expenses and advertising, marketing and promotion expenses. The increase in programming and production costs was primarily due to higher amortization of film production costs for our 2017 releases. The increase in other operating and administrative expenses was primarily due to expenses associated with DreamWorks Animation.

Theme Parks Segment Results of Operations



	Three Months Ended March 31				Increase/ (Decrease)
(in millions)	2017		2016		$		%
Revenue	$	1,118	$	1,026	$	92	9.0	%
Operating costs and expenses	721		651		70		10.7
Adjusted EBITDA	$	397	$	375	$	22	6.1	%

Theme Parks Segment—Revenue

Theme Parks revenue increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to higher guest attendance and an increase in guest spending driven by the successful opening of The Wizarding World of Harry Potter™ attraction in Hollywood in April 2016. The increase was offset by the timing of spring holidays compared to the prior year period.

Theme Parks Segment—Operating Costs and Expenses

Operating costs and expenses increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to additional marketing costs associated with our domestic parks and pre-opening costs associated with new attractions in Orlando.

Table of Contents

Corporate and Other Results of Operations



	Three Months Ended March 31						Increase/ (Decrease)
(in millions)	2017			2016			$			%
Revenue	$	208		$	199		$	9		4.2	%
Operating costs and expenses	402			353			49			13.8
Adjusted EBITDA	$	(194	)	$	(154	)	$	(40	)	(26.2	)%

Corporate and Other—Revenue

Other revenue primarily relates to Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania and operates arena management-related businesses.

Other revenue increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to increases in revenue from several of our Comcast Spectacor businesses.

Corporate and Other—Operating Costs and Expenses

Corporate and Other operating costs and expenses primarily include overhead, personnel costs, the costs of corporate initiatives and branding, and operating costs and expenses associated with Comcast Spectacor.

Corporate and Other operating costs and expenses increased for the three months ended March 31, 2017 primarily due to expenses associated with our new wireless phone service.

Consolidated Other Income (Expense) Items, Net



	Three Months Ended March 31
(in millions)	2017			2016
Interest expense	$	(755	)	$	(703	)
Investment income (loss), net	59			30
Equity in net income (losses) of investees, net	36			(11		)
Other income (expense), net	35			130
Total	$	(625	)	$	(554	)

Interest Expense

Interest expense increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to an increase in our debt outstanding.

Investment Income (Loss), Net

The components of investment income (loss), net for the three months ended March 31, 2017 and 2016 are presented in a table in Note 6 to Comcast’s condensed consolidated financial statements.

Equity in Net Income (Losses) of Investees, Net

The change in equity in net income (losses) of investees, net for the three months ended March 31, 2017 compared to the same period in 2016 was primarily due to our share of income at Atairos Group, Inc. of $57 million, which was offset by our share of loss at Hulu, LLC of $54 million. Atairos follows investment company accounting and records its investments at their fair values each reporting period with the net gains or losses reflected in its statement of income. We recognize our share of these gains and losses in equity in net income (losses) of investees, net. The loss at Hulu was driven by its higher programming and marketing costs. For the three months ended March 31, 2016, we recognized our share of losses at Atairos and Hulu of $15 million and $25 million, respectively.

Other Income (Expense), Net

Other income (expense), net for the three months ended March 31, 2016 included a gain of $108 million related to the sale of our investment in The Weather Channel’s product and technology businesses.

Table of Contents

Consolidated Income Tax Expense

Income tax expense for the three months ended March 31, 2017 and 2016 reflects an effective income tax rate that differs from the federal statutory rate primarily due to state income taxes and adjustments associated with uncertain tax positions. In 2017, we prospectively adopted the new accounting guidance related to share-based compensation, which resulted in a decrease in income tax expense of $139 million for the three months ended March 31, 2017. In addition, we had favorable settlements of certain state tax audits, which decreased our income tax expense by $83 million for the three months ended March 31, 2017. We expect our 2017 annual effective tax rate to be in the range of 35% to 37%, absent changes in tax laws or significant changes in uncertain tax positions. The expected annual effective tax rate includes the impact of the adoption of the new accounting guidance related to share-based compensation (see Note 2 to Comcast’s condensed consolidated financial statements).

Liquidity and Capital Resources

Our businesses generate significant cash flows from operating activities. We believe that we will be able to continue to meet our current and long-term liquidity and capital requirements, including fixed charges, through our cash flows from operating activities; existing cash, cash equivalents and investments; available borrowings under our existing credit facilities; and our ability to obtain future external financing. We anticipate that we will continue to use a substantial portion of our cash flows in repaying our debt obligations, funding our capital expenditures, investing in business opportunities and returning capital to shareholders.

On April 13, 2017, the Federal Communications Commission (“FCC”) announced the results of its spectrum auction. In the auction, NBCUniversal agreed to relinquish FCC licenses for spectrum in the New York, Philadelphia and Chicago designated market areas (“DMAs”) and will receive proceeds of $482 million. As of March 31, 2017, the book value of these licenses was $144 million and was recorded in other current assets in the condensed consolidated balance sheet. NBCUniversal will share broadcast signals for its NBC and Telemundo stations in these DMAs. In connection with the auction, we also agreed to acquire $1.7 billion of spectrum. We had previously made a deposit of $1.8 billion to participate in the auction, which was recorded in other intangible assets in Comcast's condensed consolidated balance sheet as of March 31, 2017.

On April 6, 2017, we acquired the remaining interests in Universal Studios Japan that we did not already own for approximately $2.3 billion. The acquisition was funded through cash on hand and borrowings under our commercial paper program. During the second quarter of 2017, we obtained commitments from lenders to refinance the Universal Studios Japan term loans, which we expect will, among other things, increase the borrowings, extend the maturity date and include a guarantee from Comcast. We expect to use a portion of the Universal Studios Japan term loans proceeds to repay a portion of amounts outstanding under our commercial paper program.

Operating Activities

Components of Net Cash Provided by Operating Activities



	Three Months Ended March 31
(in millions)	2017			2016
Operating income	$	4,530		$	4,089
Depreciation and amortization	2,502			2,278
Noncash share-based compensation	173			153
Changes in operating assets and liabilities	(580		)	(258		)
Payments of interest	(895		)	(723		)
Payments of income taxes	(132		)	(190		)
Other	58			50
Net cash provided by operating activities	$	5,656		$	5,399

The variance in changes in operating assets and liabilities for the three months ended March 31, 2017 compared to the same period in 2016 was primarily due to the timing of collections on our receivables related to home entertainment sales in the prior year period and theatrical releases in the current year period, the timing of certain payroll and employee benefit payments, and the timing of film and television spending.

Investing Activities

Net cash used in investing activities for the three months ended March 31, 2017 consisted primarily of capital expenditures, purchases of investments, cash paid for intangible assets and acquisitions. Capital expenditures increased for the three months ended March 31, 2017 compared to the same period in 2016 primarily due to increased spending in our Cable Communications segment on customer premise equipment related to the deployment of our X1 platform and wireless gateways, continued investment

Table of Contents

in scalable infrastructure to increase network capacity, and increased investment in line extensions primarily for the expansion of business services. Purchases of investments for the three months ended March 31, 2017 consisted primarily of our investment in Snap Inc. of $500 million and cash capital contributions of $457 million to Atairos.

Financing Activities

Net cash used in financing activities for the three months ended March 31, 2017 consisted primarily of repayments of debt, repurchases of common stock under our repurchase program and employee plans, and dividend payments, which were partially offset by proceeds from borrowings.

We have made, and may from time to time in the future make, optional repayments on our debt obligations, which may include repurchases of our outstanding public notes and debentures, depending on various factors, such as market conditions. See Note 7 to Comcast’s condensed consolidated financial statements for additional information on our financing activities, including details of our debt repayments and borrowings.

Available Borrowings Under Credit Facilities

We also maintain significant availability under our lines of credit and commercial paper programs to meet our short-term liquidity requirements.

As of March 31, 2017, amounts available under our consolidated revolving credit facilities, net of amounts outstanding under our commercial paper programs and outstanding letters of credit, totaled $7.4 billion, which included $585 million available under the NBCUniversal Enterprise revolving credit facility.

Share Repurchases and Dividends

Effective January 1, 2017, our Board of Directors increased our share repurchase program authorization to $12 billion, which does not have an expiration date. Under the authorization, we may repurchase shares in the open market or in private transactions. During the three months ended March 31, 2017, we repurchased a total of 20 million shares of our Class A common stock for $750 million. We expect to make $4.25 billion more in repurchases under this authorization during the remainder of 2017, subject to market conditions.

In addition, we paid $246 million related to employee taxes associated with the administration of our share-based compensation plans.

In January 2017, our Board of Directors approved a 15.0% increase in our dividend to $0.63 per share on an annualized basis and approved our first quarter dividend of $0.1575 per share to be paid in April 2017. We expect to continue to pay quarterly dividends, although each dividend is subject to approval by our Board of Directors.

Critical Accounting Judgments and Estimates

The preparation of our condensed consolidated financial statements requires us to make estimates that affect the reported amounts of assets, liabilities, revenue and expenses, and the related disclosure of contingent assets and contingent liabilities. We base our judgments on our historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making estimates about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

For a more complete discussion of the accounting judgments and estimates that we have identified as critical in the preparation of our condensed consolidated financial statements, please refer to our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2016 Annual Report on Form 10-K.

Recent Accounting Pronouncements

See Note 2 to each of Comcast’s and NBCUniversal’s condensed consolidated financial statements for additional information related to recent accounting pronouncements.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have evaluated the information required under this item that was disclosed in our 2016 Annual Report on Form 10-K and there have been no significant changes to this information.

Table of Contents

ITEM 4: CONTROLS AND PROCEDURES

Comcast Corporation

Conclusions regarding disclosure controls and procedures

Our principal executive and principal financial officers, after evaluating the effectiveness of Comcast’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this report, have concluded that, based on the evaluation of these controls and procedures required by paragraph (b) of Exchange Act Rules 13a-15 or 15d-15, Comcast’s disclosure controls and procedures were effective.

Changes in internal control over financial reporting

There were no changes in Comcast’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during Comcast’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, Comcast’s internal control over financial reporting.

NBCUniversal Media, LLC

Conclusions regarding disclosure controls and procedures

Our principal executive and principal financial officers, after evaluating the effectiveness of NBCUniversal’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report, have concluded that, based on the evaluation of these controls and procedures required by paragraph (b) of Exchange Act Rules 13a-15 or 15d-15, NBCUniversal’s disclosure controls and procedures were effective.

Changes in internal control over financial reporting

There were no changes in NBCUniversal’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during NBCUniversal’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, NBCUniversal’s internal control over financial reporting.

PART II: OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

Refer to Note 10 to Comcast’s condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for a discussion of legal proceedings.

NBCUniversal is subject to legal proceedings and claims that arise in the ordinary course of its business and does not expect the final disposition of these matters to have a material adverse effect on its results of operations, cash flows or financial condition, although any such matters could be time-consuming and costly and could injure its reputation.

ITEM 1A: RISK FACTORS

There have been no significant changes from the risk factors previously disclosed in Item 1A of our 2016 Annual Report on Form 10-K.

Table of Contents

ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The table below summarizes Comcast’s common stock repurchases during the three months ended March 31, 2017. All shares are presented on a post-split basis.

Purchases of Equity Securities



Period	Total Number of Shares Purchased		Average Price Per Share		Total Number of Shares Purchased as Part of Publicly Announced Authorization	Total Dollar Amount Purchased Under the Publcly Announced Authorization		Maximum Dollar Value of Shares That May Yet Be Purchased Under the Publicly Announced Authorization^(a)
January 1-31, 2017	—		$	—	—	$	—	$	12,000,000,000
February 1-28, 2017	13,837,918	^(b)	$	36.48	13,711,242	$	500,000,000	$	11,500,000,000
March 1-31, 2017	6,694,676		$	37.34	6,694,676	$	249,999,994	$	11,250,000,006
Total	20,532,594		$	36.76	20,405,918	$	749,999,994	$	11,250,000,006


(a)	Effective January 1, 2017, our Board of Directors increased our share repurchase program authorization to $12 billion, which does not have an expiration date. Under this authorization, we may repurchase shares in the open market or in private transactions. We expect to make $4.25 billion more in repurchases under this authorization during the remainder of 2017, subject to market conditions.


(b)	Includes 126,676 shares received in the administration of employee share-based compensation plans.

ITEM 5: OTHER INFORMATION

Employment Agreement

On April 25, 2017, Comcast entered into a new employment agreement with Neil Smit in connection with Mr. Smit retiring as President and Chief Executive Officer of Comcast Cable and assuming a new role as a non-executive Vice Chairman of Comcast, effective April 1, 2017. The agreement provides for Mr. Smit to work part-time on an exclusive basis for Comcast through December 31, 2021. The agreement maintains Mr. Smit’s current base salary of $1,930,838 through December 31, 2017 and provides for a target bonus opportunity of 300% of his base salary for 2017. After 2017, Mr. Smit’s total cash compensation will be $3,861,676 for 2018 and 2019 and $250,000 for 2020 and 2021. Mr. Smit will not receive any equity awards after December 31, 2017, at which time all of his unvested restricted stock unit and stock option awards will become fully vested.

The above summary is qualified in its entirety by the terms and conditions set forth in the agreement, a copy of which is attached hereto as Exhibit 10.1.

Iran Threat Reduction and Syria Human Rights Act Disclosure

Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, companies are required, among other things, to disclose certain activities, transactions or dealings with the Government of Iran or entities controlled directly or indirectly by the Government of Iran. Disclosure is generally required even where the activities, transactions or dealings are conducted in compliance with applicable laws and regulations and are de minimis. As of the date of this report, we are not aware of any activity, transaction or dealing during the three months ended March 31, 2017 that requires disclosure under the Act, except with respect to a January 2016 licensing agreement by a non-U.S. subsidiary of DreamWorks Animation prior to our August 2016 DreamWorks Animation acquisition. The agreement licensed a prior season of a children’s animated television series for a three-year, non-cancelable term and for a one-time fee of $5,200 to a broadcasting company that is owned and controlled by the Government of Iran. The broadcasting company paid the license fee in the first quarter of 2016. We believe that DreamWorks Animation conducted its licensing activity in compliance with applicable laws and that the license is for the permissible exportation of informational materials pursuant to certain statutory and regulatory exemptions from U.S. sanctions.

Table of Contents

ITEM 6: EXHIBITS

Comcast



Exhibit No.		Description
10.1*		Employment Agreement between Comcast Corporation and Neil Smit, dated as of April 25, 2017.
10.2*		Form of Restricted Stock Unit Award and Long-Term Incentive Awards Summary Schedule under the Comcast Corporation 2002 Restricted Stock Plan.
31.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following financial statements from Comcast Corporation’s Quarterly Report on Form 10-Q for the three months ended March 31, 2017, filed with the Securities and Exchange Commission on April 27, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheet; (ii) the Condensed Consolidated Statement of Income; (iii) the Condensed Consolidated Statement of Comprehensive Income; (iv) the Condensed Consolidated Statement of Cash Flows; (v) the Condensed Consolidated Statement of Changes in Equity; and (vi) the Notes to Condensed Consolidated Financial Statements.
* Constitutes a management contract or compensatory plan or arrangement.

NBCUniversal



Exhibit No.		Description
31.2		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.2		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following financial statements from NBCUniversal Media, LLC’s Quarterly Report on Form 10-Q for the three months ended March 31, 2017, filed with the Securities and Exchange Commission on April 27, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheet; (ii) the Condensed Consolidated Statement of Income; (iii) the Condensed Consolidated Statement of Comprehensive Income; (iv) the Condensed Consolidated Statement of Cash Flows; (v) the Condensed Consolidated Statement of Changes in Equity; and (vi) the Notes to Condensed Consolidated Financial Statements.

Table of Contents

SIGNATURES

Comcast

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



		COMCAST CORPORATION

By:		/s/ DANIEL C. MURDOCK
		Daniel C. Murdock Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)

Date: April 27, 2017

NBCUniversal

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



		NBCUNIVERSAL MEDIA, LLC

By:		/s/ DANIEL C. MURDOCK
		Daniel C. Murdock Senior Vice President (Principal Accounting Officer)

Date: April 27, 2017

Table of Contents

NBCUniversal Media, LLC Financial Statements



Index	Page
Condensed Consolidated Balance Sheet	39
Condensed Consolidated Statement of Income	40
Condensed Consolidated Statement of Comprehensive Income	41
Condensed Consolidated Statement of Cash Flows	42
Condensed Consolidated Statement of Changes in Equity	43
Notes to Condensed Consolidated Financial Statements	44

Table of Contents

NBCUniversal Media, LLC

Condensed Consolidated Balance Sheet

(Unaudited)



(in millions)	March 31, 2017		December 31, 2016
Assets
Current Assets:
Cash and cash equivalents	$	1,882	$	1,966
Receivables, net	6,227		6,302
Programming rights	1,471		1,241
Other current assets	1,164		938
Total current assets	10,744		10,447
Film and television costs	6,961		7,245
Investments	1,940		1,263
Property and equipment, net of accumulated depreciation of $3,567 and $3,350	10,695		10,511
Goodwill	23,793		23,323
Intangible assets, net of accumulated amortization of $6,854 and $6,568	13,655		13,777
Other noncurrent assets, net	1,561		1,688
Total assets	$	69,349	$	68,254
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses related to trade creditors	$	1,487	$	1,647
Accrued participations and residuals	1,811		1,726
Program obligations	681		807
Deferred revenue	1,143		1,016
Accrued expenses and other current liabilities	1,573		1,888
Note payable to Comcast	1,853		2,703
Current portion of long-term debt	115		127
Total current liabilities	8,663		9,914
Long-term debt, less current portion	11,623		11,461
Accrued participations, residuals and program obligations	1,164		1,202
Other noncurrent liabilities	4,039		4,130
Commitments and contingencies
Redeemable noncontrolling interests	527		530
Equity:
Member’s capital	40,792		39,036
Accumulated other comprehensive income (loss)	71		(135		)
Total NBCUniversal member’s equity	40,863		38,901
Noncontrolling interests	2,470		2,116
Total equity	43,333		41,017
Total liabilities and equity	$	69,349	$	68,254

See accompanying notes to condensed consolidated financial statements.

Table of Contents

NBCUniversal Media, LLC

Condensed Consolidated Statement of Income

(Unaudited)



	Three Months Ended March 31
(in millions)	2017			2016
Revenue	$	7,868		$	6,861
Costs and Expenses:
Programming and production	3,313			2,965
Other operating and administrative	1,832			1,595
Advertising, marketing and promotion	706			679
Depreciation	231			192
Amortization	277			222
	6,359			5,653
Operating income	1,509			1,208
Other Income (Expense):
Interest expense	(143		)	(147		)
Investment income (loss), net	14			6
Equity in net income (losses) of investees, net	(26		)	(2		)
Other income (expense), net	11			115
	(144		)	(28		)
Income before income taxes	1,365			1,180
Income tax expense	(92		)	(98		)
Net income	1,273			1,082
Net (income) loss attributable to noncontrolling interests	(73		)	(80		)
Net income attributable to NBCUniversal	$	1,200		$	1,002

See accompanying notes to condensed consolidated financial statements.

Table of Contents

NBCUniversal Media, LLC

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)



	Three Months Ended March 31
(in millions)	2017			2016
Net income	$	1,273		$	1,082
Unrealized gains (losses) on marketable securities, net	1			—
Deferred gains (losses) on cash flow hedges, net	(14		)	(18		)
Employee benefit obligations, net	106			4
Currency translation adjustments, net	200			295
Comprehensive income	1,566			1,363
Net (income) loss attributable to noncontrolling interests	(73		)	(80		)
Other comprehensive (income) loss attributable to noncontrolling interests	(87		)	(137		)
Comprehensive income attributable to NBCUniversal	$	1,406		$	1,146

See accompanying notes to condensed consolidated financial statements.

Table of Contents

NBCUniversal Media, LLC

Condensed Consolidated Statement of Cash Flows

(Unaudited)



	Three Months Ended March 31
(in millions)	2017			2016
Net cash provided by operating activities	$	1,477		$	1,177
Investing Activities
Capital expenditures	(285		)	(295		)
Cash paid for intangible assets	(55		)	(52		)
Acquisitions of real estate properties	—			(78		)
Proceeds from sales of investments	10			101
Other	(105		)	(14		)
Net cash provided by (used in) investing activities	(435		)	(338		)
Financing Activities
Repurchases and repayments of debt	(49		)	(35		)
Proceeds from (repayments of) borrowings from Comcast, net	(849		)	(875		)
Distributions to member	(195		)	(195		)
Distributions to noncontrolling interests	(61		)	(63		)
Other	28			—
Net cash provided by (used in) financing activities	(1,126		)	(1,168		)
Increase (decrease) in cash and cash equivalents	(84		)	(329		)
Cash and cash equivalents, beginning of period	1,966			1,410
Cash and cash equivalents, end of period	$	1,882		$	1,081

See accompanying notes to condensed consolidated financial statements.

Table of Contents

NBCUniversal Media, LLC

Condensed Consolidated Statement of Changes in Equity

(Unaudited)



(in millions)	Redeemable Noncontrolling Interests			Member’s Capital			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests			Total Equity
Balance, December 31, 2015	$	372		$	32,834		$	(212	)	$	1,681		$	34,303
Dividends declared				(195		)							(195		)
Contributions from (distributions to) noncontrolling interests, net	(22		)							(41		)	(41		)
Other comprehensive income (loss)							144			137			281
Other				1									1
Net income (loss)	19			1,002						61			1,063
Balance, March 31, 2016	$	369		$	33,642		$	(68	)	$	1,838		$	35,412
Balance, December 31, 2016	$	530		$	39,036		$	(135	)	$	2,116		$	41,017
Dividends declared				(195		)							(195		)
Contributions from (distributions to) noncontrolling interests, net	(20		)							(41		)	(41		)
Contribution from member				662									662
Other comprehensive income (loss)							206			87			293
Other	(1		)	89						253			342
Net income (loss)	18			1,200						55			1,255
Balance, March 31, 2017	$	527		$	40,792		$	71		$	2,470		$	43,333

See accompanying notes to condensed consolidated financial statements.

Table of Contents

NBCUniversal Media, LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1: Condensed Consolidated Financial Statements

Basis of Presentation

Unless indicated otherwise, throughout these notes to the condensed consolidated financial statements, we refer to NBCUniversal and its consolidated subsidiaries as “we,” “us” and “our.” We have prepared these unaudited condensed consolidated financial statements based on SEC rules that permit reduced disclosure for interim periods. These financial statements include all adjustments that are necessary for a fair presentation of our consolidated results of operations, financial condition and cash flows for the periods shown, including normal, recurring accruals and other items. The consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year.

Note 2: Recent Accounting Pronouncements

Revenue Recognition

We have reviewed a majority of our revenue arrangements and expect our review to be completed in the second quarter of 2017. As a result of our review, we do not expect any material impact on our financial position or results of operations. However, we do expect that the new standard will impact the timing of recognition for our Cable Networks, Broadcast Television and Filmed Entertainment segments’ content licensing revenue associated with renewals or extensions of existing program licensing agreements, which upon adoption will be recognized as revenue when the licensed content becomes available under the renewal or extension instead of when the agreement is renewed or extended. The updated guidance also requires additional disclosures regarding our revenue transactions.

Financial Assets and Financial Liabilities

In January 2016, the FASB updated the accounting guidance related to the recognition and measurement of financial assets and financial liabilities. The updated accounting guidance, among other things, requires that all nonconsolidated equity investments, except those accounted for under the equity method, be measured at fair value and that the changes in fair value be recognized in net income, such as changes in the fair value of our investment in Snap Inc. (see Note 6). The updated guidance is effective for us as of January 1, 2018. The updated accounting guidance requires a cumulative effect adjustment to beginning retained earnings in the year the guidance is adopted with certain exceptions. We are currently in the process of determining the impact that the updated accounting guidance will have on our consolidated financial statements.

Leases

Table of Contents

NBCUniversal Media, LLC

Note 3: Significant Transactions

FCC Spectrum Auction

On April 13, 2017, the Federal Communications Commission (“FCC”) announced the results of its spectrum auction. In the auction, we agreed to relinquish FCC licenses for spectrum in the New York, Philadelphia and Chicago designated market areas (“DMAs”) and will receive proceeds of $482 million. As of March 31, 2017, the book value of these licenses was $144 million and was recorded in other current assets in the condensed consolidated balance sheet. We will share broadcast signals for our NBC and Telemundo stations in these DMAs.

Universal Studios Japan

On April 6, 2017, we acquired the remaining interests in Universal Studios Japan that we did not already own for approximately $2.3 billion. The acquisition was funded through borrowings under our revolving credit agreement with Comcast. During the second quarter of 2017, we obtained commitments from lenders to refinance the Universal Studios Japan term loans, which we expect will, among other things, increase the borrowings, extend the maturity date and include a guarantee from Comcast. We expect to use a portion of the Universal Studios Japan term loans proceeds to repay a portion of amounts outstanding under our revolving credit agreement with Comcast.

DreamWorks Animation

On August 22, 2016, Comcast acquired all of the outstanding stock of DreamWorks Animation for $3.8 billion. DreamWorks Animation’s stockholders received $41 in cash for each share of DreamWorks Animation common stock. DreamWorks Animation creates animated feature films, television series and specials, live entertainment, and related consumer products.

Following the acquisition, Comcast converted DreamWorks Animation to a limited liability company and contributed its equity to us as a capital contribution. The net assets contributed to us excluded deferred income taxes and other tax-related items recorded by Comcast. The results of operations for DreamWorks Animation are reported in our Filmed Entertainment segment following the acquisition date and are presented as if the initial equity contribution occurred on the date of Comcast’s acquisition.

Preliminary Allocation of Purchase Price

The transaction was accounted for under the acquisition method of accounting and, accordingly, the assets and liabilities are to be recorded at their fair market values as of the acquisition date. We recorded the acquired assets and liabilities of DreamWorks Animation at their estimated fair values based on preliminary valuation analyses. In valuing acquired assets and liabilities, fair value estimates were primarily based on Level 3 inputs, including future expected cash flows, market rate assumptions and discount rates. The fair value of the assumed debt was primarily based on quoted market values. The fair value of the liability related to a tax receivable agreement that DreamWorks Animation had previously entered into with one of its former stockholders (the “tax receivable agreement”) was based on the contractual settlement provisions in the agreement. During the three months ended March 31, 2017, we updated the preliminary allocation of purchase price for DreamWorks Animation, which primarily resulted in increases to intangible assets, noncontrolling interests and goodwill. The changes did not have a material impact on our condensed consolidated financial statements. We may adjust these amounts further as valuations are finalized and we obtain information necessary to complete the analyses, but no later than one year from the acquisition date.

The table below presents the preliminary allocation of the purchase price to the assets and liabilities of DreamWorks Animation.



Preliminary Allocation of Purchase Price
(in millions)
Film and television costs	$	854
Intangible assets	362
Working capital	232
Debt	(381		)
Tax receivable agreement^(a)	(146		)
Other noncurrent assets and liabilities and other^(b)	407
Identifiable net assets (liabilities) acquired	1,328
Noncontrolling interests	(337		)
Goodwill	2,782
Cash consideration transferred	$	3,773

(a)

The tax receivable agreement was settled immediately following the acquisition and the payment was recorded as an operating activity in our condensed consolidated statement of cash flows in the third quarter of 2016. Comcast made a separate cash capital contribution of $146 million to fund the settlement which was recorded as a financing activity in our condensed consolidated statement of cash flows in the third quarter of 2016.

Table of Contents

NBCUniversal Media, LLC


(b)	Other included $281 million recorded to member’s capital that represented deferred income tax assets and other tax-related items recorded by Comcast but excluded from the net assets contributed to us.

Revenue and net income attributable to the acquisition of DreamWorks Animation were not material for the three months ended March 31, 2017.

Note 4: Related Party Transactions

In the ordinary course of our business, we enter into transactions with Comcast.

We generate revenue from Comcast primarily from the distribution of our cable network programming, the fees received under retransmission consent agreements in our Broadcast Television segment and, to a lesser extent, the sale of advertising and our owned programming, and we incur expenses primarily related to advertising and various support services provided by Comcast to us.

Comcast is also the counterparty to one of our contractual obligations. As of March 31, 2017, the carrying value of the liability associated with this contractual obligation was $383 million.

The following tables present transactions with Comcast and its consolidated subsidiaries that are included in our condensed consolidated financial statements.

Condensed Consolidated Balance Sheet



(in millions)	March 31, 2017		December 31, 2016
Transactions with Comcast and Consolidated Subsidiaries
Receivables, net	$	322	$	285
Accounts payable and accrued expenses related to trade creditors	$	42	$	55
Accrued expenses and other current liabilities	$	19	$	4
Note payable to Comcast	$	1,853	$	2,703
Other noncurrent liabilities	$	389	$	389

Condensed Consolidated Statement of Income



	Three Months Ended March 31
(in millions)	2017			2016
Transactions with Comcast and Consolidated Subsidiaries
Revenue	$	459		$	406
Operating costs and expenses	$	(61	)	$	(60	)
Other income (expense)	$	(19	)	$	(13	)

Note 5: Film and Television Costs



(in millions)	March 31, 2017		December 31, 2016
Film Costs:
Released, less amortization	$	1,657	$	1,750
Completed, not released	469		50
In production and in development	982		1,310
	3,108		3,110
Television Costs:
Released, less amortization	2,008		1,953
In production and in development	729		853
	2,737		2,806
Programming rights, less amortization	2,587		2,570
	8,432		8,486
Less: Current portion of programming rights	1,471		1,241
Film and television costs	$	6,961	$	7,245

Table of Contents

NBCUniversal Media, LLC

Note 6: Investments



(in millions)	March 31, 2017		December 31, 2016
Fair Value Method:
Snap	$	662	$	—
Other	7		6
	669		6
Equity Method:
Hulu	171		225
Other	400		336
	571		561
Cost Method:
BuzzFeed	400		400
Other	300		296
	700		696
Total investments	$	1,940	$	1,263

Fair Value Method

Snap

In March 2017, Comcast acquired an interest in Snap Inc. as part of its initial public offering. On March 31, 2017, Comcast contributed its investment in Snap to us as an equity contribution which was recorded in our condensed consolidated statement of equity based on the fair value of the investment as of March 31, 2017. We have classified our investment as available for sale. Snap is a camera company whose primary product is Snapchat, a camera app that was created to help people communicate through short videos and images.

Equity Method

The Weather Channel

Note 7: Long-Term Debt

As of March 31, 2017, our debt, excluding the note payable to Comcast, had a carrying value of $11.7 billion and an estimated fair value of $12.6 billion. The estimated fair value of our publicly traded debt was primarily based on Level 1 inputs that use quoted market values for the debt. The estimated fair value of debt for which there are no quoted market prices was based on Level 2 inputs that use interest rates available to us for debt with similar terms and remaining maturities.

Cross-Guarantee Structure

We, Comcast and a 100% owned cable holding company subsidiary of Comcast (“CCCL Parent”) have fully and unconditionally guaranteed each other’s debt securities, including the $7 billion Comcast revolving credit facility due 2021. As of March 31, 2017, outstanding debt securities of $45.5 billion of Comcast and CCCL Parent were subject to the guarantee structure.

We do not, however, guarantee the obligations of NBCUniversal Enterprise with respect to its $3.3 billion aggregate principal amount of senior notes, $1.5 billion revolving credit facility, commercial paper program, or $725 million liquidation preference of Series A cumulative preferred stock.

None of Comcast, CCCL Parent nor NBCUniversal guarantee the $3.4 billion of Universal Studios Japan term loans.

Note 8: Share-Based Compensation

Comcast maintains share-based compensation plans that consist primarily of awards of restricted share units and stock options to certain employees and directors as part of its approach to long-term incentive compensation. Additionally, through its employee stock purchase plans, employees are able to purchase shares of Comcast common stock at a discount through payroll deductions. Certain of our employees participate in these plans and the expense associated with their participation is settled in cash with Comcast.

Table of Contents

NBCUniversal Media, LLC

Recognized Share-Based Compensation Expense



	Three Months Ended March 31
(in millions)	2017		2016
Restricted share units	$	20	$	18
Stock options	2		2
Employee stock purchase plans	3		3
Total	$	25	$	23

Note 9: Supplemental Financial Information

Receivables



(in millions)	March 31, 2017		December 31, 2016
Receivables, gross	$	6,647	$	6,799
Less: Allowance for returns and customer incentives	343		413
Less: Allowance for doubtful accounts	77		84
Receivables, net	$	6,227	$	6,302

Accumulated Other Comprehensive Income (Loss)



(in millions)	March 31, 2017			March 31, 2016
Unrealized gains (losses) on marketable securities	$	1		$	—
Deferred gains (losses) on cash flow hedges	9			(19		)
Unrecognized gains (losses) on employee benefit obligations	120			3
Cumulative translation adjustments	(59		)	(52		)
Accumulated other comprehensive income (loss)	$	71		$	(68	)

Net Cash Provided by Operating Activities



	Three Months Ended March 31
(in millions)	2017			2016
Net income	$	1,273		$	1,082
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	508			414
Equity in net (income) losses of investees, net	26			2
Cash received from investees	14			12
Net (gain) loss on investment activity and other	(18		)	(114		)
Deferred income taxes	9			48
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables, net	104			349
Film and television costs, net	46			(84		)
Accounts payable and accrued expenses related to trade creditors	(190		)	(139		)
Other operating assets and liabilities	(295		)	(393		)
Net cash provided by operating activities	$	1,477		$	1,177

Cash Payments for Interest and Income Taxes

Table of Contents

NBCUniversal Media, LLC

Noncash Investing and Financing Activities

During the three months ended March 31, 2017:


•	we acquired $216 million of property and equipment and intangible assets that were accrued but unpaid


•	Comcast contributed its investment in Snap to us at its fair value as of March 31, 2017, which was a noncash transaction (see Note 6 for additional information)

Note 10: Financial Data by Business Segment

We present our operations in four reportable business segments:


•	Cable Networks: Consists primarily of our national cable networks, our regional sports and news networks, our international cable networks, and our cable television studio production operations.


•	Broadcast Television: Consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo owned local broadcast television stations, the NBC Universo national cable network, and our broadcast television studio production operations.


•	Filmed Entertainment: Consists primarily of the operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment worldwide; our films are also produced under the Illumination, Focus Features and DreamWorks Animation names.


•	Theme Parks: Consists primarily of our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan.

We use Adjusted EBITDA (formerly operating income before depreciation and amortization) to evaluate the profitability of our operating segments and the components of net income attributable to NBCUniversal below Adjusted EBITDA are not separately evaluated by our management. Our financial data by business segment is presented in the tables below.



	Three Months Ended March 31, 2017
(in millions)	Revenue^(c)			Adjusted EBITDA^(d)			Depreciation and Amortization		Operating Income (Loss)			Capital Expenditures		Cash Paid for Intangible Assets
Cable Networks	$	2,641		$	1,116		$	214	$	902		$	2	$	3
Broadcast Television	2,208			322			32		290			29		3
Filmed Entertainment	1,981			368			21		347			10		5
Theme Parks	1,118			397			142		255			229		13
Headquarters and Other^(a)	8			(185		)	99		(284		)	15		31
Eliminations^(b)	(88		)	(1		)	—		(1		)	—		—
Total	$	7,868		$	2,017		$	508	$	1,509		$	285	$	55



	Three Months Ended March 31, 2016
(in millions)	Revenue^(c)			Adjusted EBITDA^(d)			Depreciation and Amortization		Operating Income (Loss)			Capital Expenditures		Cash Paid for Intangible Assets
Cable Networks	$	2,453		$	956		$	190	$	766		$	1	$	1
Broadcast Television	2,084			284			32		252			19		3
Filmed Entertainment	1,383			167			8		159			3		3
Theme Parks	1,026			375			98		277			200		9
Headquarters and Other^(a)	3			(160		)	86		(246		)	72		36
Eliminations^(b)	(88		)	—			—		—			—		—
Total	$	6,861		$	1,622		$	414	$	1,208		$	295	$	52


(a)	Headquarters and Other activities include costs associated with overhead, allocations, personnel costs and headquarter initiatives.


(b)	Included in Eliminations are transactions that our segments enter into with one another, which consist primarily of the licensing of film and television content from our Filmed Entertainment and Broadcast Television segments to our Cable Networks segment.


(c)	No single customer accounted for a significant amount of revenue in any period.

Table of Contents

NBCUniversal Media, LLC

(d)

We use Adjusted EBITDA as the measure of profit or loss for our operating segments. Adjusted EBITDA is defined as net income attributable to NBCUniversal before net (income) loss attributable to noncontrolling interests, income tax expense, other income (expense) items, net, and depreciation and amortization, and excluding impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets, if any. Other income (expense) items, net include interest expense, investment income (loss), equity in net income (losses) of investees, and other income (expense), net (as stated in our condensed consolidated statement of income). This measure eliminates the significant level of noncash amortization expense that results from intangible assets recognized in connection with business combinations. Additionally, it is unaffected by our capital and tax structures and by our investment activities. We use this measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. We believe that this measure is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure may not be directly comparable to similar measures used by other companies. This measure should not be considered a substitute for operating income (loss), net income (loss), net income (loss) attributable to NBCUniversal, net cash provided by operating activities, or other measures of performance or liquidity we have reported in accordance with GAAP. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated income before income taxes is presented in the table below.



	Three Months Ended March 31
(in millions)	2017			2016
Adjusted EBITDA	$	2,017		$	1,622
Depreciation	(231		)	(192		)
Amortization	(277		)	(222		)
Other income (expense) items, net	(144		)	(28		)
Income before income taxes	$	1,365		$	1,180

Three Months Ended
March 31

(in millions)

Income taxes