COMCAST CORP: Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-K)

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Management's discussion and analysis of financial condition and results of
operations is provided as a supplement to, and should be read in conjunction
with, the consolidated financial statements and related notes to enhance the
understanding of our operations and our present business environment. For more
information about our company's operations and the risks facing our businesses,
see Item 1: Business and Item 1A: Risk Factors, respectively. As discussed in
Note 2, we changed the presentation of our segment operating results in 2021,
and all amounts are presented on a consistent basis under the new segment
structure. Refer to Item 7: Management's Discussion and Analysis of Financial
Condition and Results of Operations in our   2020 Annual Report on Form 10-K
for management's discussion and analysis of financial condition and results of
operations for the fiscal year 2020 compared to fiscal year 2019, with the
exception of the discussion and analysis related to our NBCUniversal segments,
which is included below for all periods based on the updated segment structure.
Overview


We are a global media and technology company with three primary businesses:
Comcast Cable, NBCUniversal and Sky. We present our operations in five
reportable business segments (1) Comcast Cable in one reportable business
segment, referred to as Cable Communications; (2) NBCUniversal in three
reportable business segments: Media, Studios and Theme Parks (collectively, the
"NBCUniversal segments"); and (3) Sky in one reportable business segment.
Consolidated Revenue, Net Income Attributable to Comcast Corporation and Adjusted
EBITDA(a)
(in billions)


     Revenue        Net Income Attributable to Comcast Corporation       Adjusted EBITDA

[[Image Removed: cmcsa-20211231_g6.jpg]]



(a)Adjusted EBITDA is a financial measure that is not defined by generally
accepted accounting principles in the United States ("GAAP"). Refer to the
"Non-GAAP Financial Measure" section on page 52 for additional information,
including our definition and our use of Adjusted EBITDA, and for a
reconciliation from net income attributable to Comcast Corporation to Adjusted
EBITDA.
2021 Developments
The following are the more significant developments in our businesses during
2021:
Cable Communications
•Revenue increased 7.1% to $64.3 billion, reflecting increases in broadband,
wireless, business services, advertising, video and other revenue, partially
offset by a decline in voice revenue.
•Adjusted EBITDA increased 11.2% to $28.1 billion primarily due to increases in
revenue, partially offset by increases in programming and technical and product
support expenses.
•Operating margin increased from 42.1% to 43.7%.
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•Total customer relationships increased by 1.1 million, total broadband
customers increased by 1.3 million, total wireless lines increased by 1.2
million and total video customers decreased by 1.7 million.
•Capital expenditures increased 4.9% to $6.9 billion, reflecting increased
spending on scalable infrastructure and line extensions, partially offset by
decreased spending on customer premise equipment and support capital.
NBCUniversal
•Total NBCUniversal revenue increased 26.1% to $34.3 billion and total
NBCUniversal Adjusted EBITDA increased 6.0% to $5.7 billion.
•Media segment revenue increased 20.3% to $22.8 billion and Adjusted EBITDA
decreased 18.0% to $4.6 billion, including the impact of our broadcast of the
Tokyo Olympics in 2021. Excluding $1.8 billion of revenue associated with our
broadcast of the Tokyo Olympics in 2021, revenue in the Media segment increased
11.0%, primarily due to increases in distribution revenue, advertising revenue
and other revenue, including the effects of COVID-19 in the prior year period.
•Media segment results include the operations of Peacock, which in 2021
generated revenue of $778 million and operating costs and expenses of
$2.5 billion, compared to revenue of $118 million and operating costs and
expenses of $781 million in 2020. We continued to invest in content and grow our
customer base during 2021, and in the fourth quarter of 2021, we introduced
certain ad-supported Peacock programming into Sky video services, launching
first in the United Kingdom and Ireland.

•Studios segment revenue increased 16.2% to $9.4 billion, due to increases in
content licensing revenue, theatrical revenue and home entertainment and other
revenue as our film and television production operations returned to full
capacity. Studios revenue included licenses of content to our Media and other
segments, including the impact of a new licensing agreement for content that
became exclusively available for streaming on Peacock in 2021, and the impacts
of initial content licenses associated with the launch of Peacock in 2020, which
are eliminated in consolidation.

•Theme Parks segment revenue increased 141.2% to $5.1 billion and Adjusted
EBITDA increased from $(0.5) billion to $1.3 billion, reflecting the operation
of our theme parks in the current year period compared to temporary closures and
capacity restrictions as a result of COVID-19 in the prior year period and the
opening of our theme park in Beijing, China in September 2021.
Sky
•Revenue increased 9.1% to $20.3 billion. Excluding the impact of foreign
currency, Sky revenue increased 3.1% due to increases in advertising and
direct-to-consumer revenue, partially offset by a decrease in content revenue,
which were affected by COVID-19 in the prior year period and reduced broadcast
rights for Serie A in the current year period.
•Adjusted EBITDA increased 20.8% to $2.4 billion. Excluding the impact of
foreign currency, Sky Adjusted EBITDA increased 10.2% primarily due to increases
in revenue and decreases in programming and production expenses, partially
offset by increases in direct network costs and other expenses.
Other
•Corporate and Other Adjusted EBITDA losses decreased from $1.8 billion to $1.4
billion primarily due to costs incurred in the prior year period in response to
COVID-19, including severance charges related to our businesses.
•Resumed our share repurchase program in the second quarter of 2021. We
repurchased a total of 73.2 million shares of our Class A common stock for $4.0
billion in 2021. Raised our dividend by $0.08 to $1.00 per share on an
annualized basis in January 2021 and paid $4.5 billion of dividends in 2021.

• Debt reduction of $8.9 billion in 2021 and ended the year with $94.8 billion total short-term and long-term debt and $8.7 billion cash and cash equivalents.


Impacts of COVID-19
COVID-19 and measures taken to prevent its spread across the globe have impacted
our businesses in a number of ways, with the most significant effects in 2020,
affecting the comparability of periods included in this report. COVID-19 has had
material negative impacts on NBCUniversal and Sky results of operations
primarily due to the temporary restrictions and closures at our theme parks and
the impacts of professional sports, respectively. We expect the effects of the
COVID-19 pandemic will continue to adversely impact our consolidated results of
operations over the near to medium term, although the extent of such

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impact will depend on restrictive governmental measures, U.S. and global
economic conditions, expanded availability and acceptance of vaccines and
consumer behavior in response to COVID-19. The following summary provides a
discussion of current and potential future effects of the pandemic with direct
impacts to our businesses.
NBCUniversal
•Our theme parks in Orlando and Hollywood operated without capacity
restrictions, following periods with capacity restrictions in place in the
second quarter of 2021. Our theme park in Hollywood began requiring proof of
vaccination or a negative COVID-19 test result for park entry in accordance with
local requirements in the fourth quarter of 2021. Our theme park in Japan began
operating without capacity restrictions in the fourth quarter of 2021, following
periods with capacity restrictions in place. Our newest theme park, Universal
Beijing Resort, opened in September 2021 with capacity restrictions. The
capacity restrictions and temporary closures of our theme parks had a
significant impact on our revenue and Adjusted EBITDA on a consolidated basis.
The results of operations at our theme parks may continue to be negatively
impacted and we cannot predict if our parks will remain open or be subject to
capacity restrictions, or the level of attendance at our reopened parks. The
development of the Epic Universe theme park in Orlando resumed in 2021 after
having been paused in 2020.
•Delays to the start of seasons for certain professional sports leagues,
including the 2020-21 NHL and NBA seasons, resulted in the shift of additional
events into the first half of 2021 compared to a normal year. The delays
impacted the timing of revenue and expense recognition, because both advertising
revenue and costs associated with broadcasting these programs are recognized
when events are broadcast. The timing of sports seasons generally returned to a
normal calendar beginning in the third quarter of 2021. In addition, the Tokyo
Olympics were postponed from the third quarter of 2020 to the third quarter of
2021, resulting in a corresponding delay of the associated revenue and costs.
•Our studio production operations have generally returned to full capacity. We
delayed or altered the theatrical distribution strategy for certain of our
films, both domestically and internationally as a result of the temporary
closures and limited capacity operations of many movie theaters worldwide caused
by COVID-19. Delays in theatrical releases affect both current and future
periods as a result of corresponding delays in subsequent content licensing
windows. Results of operations in our Studios segment may be negatively impacted
over the near to medium term as a result of COVID-19.
Sky
•Direct-to-consumer revenue has been negatively impacted, and future periods may
be negatively impacted, as a result of lower sports subscription revenue due to
the closures and extent of reopening of our commercial customers' locations. In
addition, delays to the start of the 2020-21 seasons for certain sports,
including European football, resulted in the shift of additional events and the
significant costs associated with broadcasting these programs into the first and
second quarters of 2021 compared to a normal year. The timing of sports seasons
generally returned to a normal calendar beginning in the third quarter of 2021.

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Consolidated Operating Results


Year ended December 31 (in millions, except per                                                      % Change               % Change
share data)                                             2021         2020         2019           2020 to 2021           2019 to 2020
Revenue                                         $ 116,385    $ 103,564    $ 108,942                   12.4  %                (4.9) %
Costs and Expenses:
Programming and production                         38,450       33,121       34,440                   16.1                   (3.8)
Other operating and administrative                 35,619       33,109       32,807                    7.6                    0.9
Advertising, marketing and promotion                7,695        6,741        7,617                   14.2                  (11.5)
Depreciation                                        8,628        8,320        8,663                    3.7                   (4.0)
Amortization                                        5,176        4,780        4,290                    8.3                   11.4

Total costs and expenses                           95,568       86,071       87,817                   11.0                   (2.0)
Operating income                                   20,817       17,493       21,125                   19.0                  (17.2)
Interest expense                                   (4,281)      (4,588)      (4,567)                  (6.7)                   0.5
Investment and other income (loss), net             2,557        1,160          438                  120.4                  164.8
Income before income taxes                         19,093       14,065       16,996                   35.7                  (17.2)
Income tax expense                                 (5,259)      (3,364)      (3,673)                  56.3                   (8.4)
Net income                                         13,833       10,701       13,323                   29.3                  (19.7)
Less: Net income (loss) attributable to
noncontrolling interests and redeemable
subsidiary preferred stock                           (325)         167          266                        NM               (37.5)

Net income attributable to Comcast Company $14,159 $10,534 $

  13,057                   34.4  %               (19.3) %
Basic earnings per common share attributable to
Comcast Corporation shareholders                $    3.09    $    2.30    $    2.87                   34.3  %               (19.9) %
Diluted earnings per common share attributable
to Comcast Corporation shareholders             $    3.04    $    2.28    $    2.83                   33.3  %               (19.4) %

Adjusted EBITDA(a)                              $  34,708    $  30,826    $  34,258                   12.6  %               (10.0) %


Percentage changes that are considered not meaningful are denoted with NM.
(a)Adjusted EBITDA is a non-GAAP financial measure. Refer to the "Non-GAAP
Financial Measure" section on page 52 for additional information, including our
definition and our use of Adjusted EBITDA, and for a reconciliation from net
income attributable to Comcast Corporation to Adjusted EBITDA.
Consolidated Revenue
The following graph illustrates the contributions to the change in consolidated
revenue made by our Cable Communications, NBCUniversal and Sky segments, as well
as by Corporate and Other activities, including eliminations.
[[Image Removed: cmcsa-20211231_g7.jpg]]
The primary drivers of the change in revenue from 2020 to 2021 were as follows:
•Growth in our NBCUniversal segments driven by increased revenue in the Media,
Theme Parks and Studios segments.
•Growth in our Cable Communications segment driven by increased broadband,
wireless, business services, advertising, video and other revenue, partially
offset by decreased voice revenue.

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•Growth in our Sky segment driven by increased advertising and
direct-to-consumer revenue, partially offset by decreased content revenue, as
well as the impact of foreign currency translation.
Revenue for our segments and other businesses is discussed separately below
under the heading "Segment Operating Results."
Consolidated Costs and Expenses
The following graph illustrates the contributions to the change in consolidated
operating costs and expenses, representing total costs and expenses excluding
depreciation and amortization expense, made by our Cable Communications,
NBCUniversal and Sky segments, as well as by Corporate and Other activities,
including adjustments and eliminations.
[[Image Removed: cmcsa-20211231_g8.jpg]]
The primary drivers of the change in operating costs and expenses from 2020 to
2021 were as follows:
•An increase in NBCUniversal expenses due to increases in our Media, Studios and
Theme Parks segments.
•An increase in Cable Communications segment expenses due to increased
programming expenses, technical and product support costs, franchise and other
regulatory fees, and advertising, marketing and promotion expenses, partially
offset by a decrease in other expenses and customer service expenses.
•An increase in Sky segment expenses primarily due to increases in direct
network costs and other expenses, partially offset by decreases in programming
and production costs, as well as the impacts of foreign currency translation.
•A decrease in Corporate and Other expenses primarily due to severance charges
related to our businesses in the prior year period.
•Consolidated costs and expenses for 2020 also includes an adjustment of
$177 million related to a legal settlement that was excluded from Adjusted
EBITDA and our segment operating results.
Operating costs and expenses for our segments and our corporate operations,
business development initiatives and other businesses are discussed separately
below under the heading "Segment Operating Results."
Consolidated Depreciation and Amortization Expense
                                                                                         % Change               % Change
Year ended December 31 (in millions)                2021        2020        2019     2020 to 2021           2019 to 2020
Cable Communications                         $  7,811    $  7,753    $  7,994              0.7  %                (3.0) %
NBCUniversal                                    2,466       2,307       2,129              6.9                    8.4
Sky                                             3,379       3,034       2,699             11.4    12.4
Corporate and Other                               147           6         131                  NM               (96.0)
Comcast Consolidated                         $ 13,804    $ 13,100    $ 12,953              5.4  %                 1.1  %


Percentage changes that are considered not meaningful are denoted with NM.
Sky depreciation and amortization expense increased in 2021 primarily due to the
impacts of foreign currency and increased amortization of software. NBCUniversal
depreciation and amortization expense increased primarily due to the opening of
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Universal Beijing Resort in September 2021. Cable Communications depreciation
and amortization expense increased primarily due to increased spending on
scalable infrastructure and line extensions.
Amortization expense from acquisition-related intangible assets totaled $2.4
billion, $2.3 billion and $2.0 billion for 2021, 2020 and 2019, respectively.
Amounts primarily relate to customer relationship intangible assets recorded in
connection with the Sky transaction in the fourth quarter of 2018 and the
NBCUniversal transaction in 2011.
Consolidated Interest Expense
Interest expense decreased in 2021 compared to 2020 primarily due to $360
million of charges recorded in 2020 related to the early redemption of senior
notes compared to $204 million of charges related to early redemptions in 2021,
as well as a decrease in average debt outstanding and lower weighted-average
interest rates.
Consolidated Investment and Other Income (Loss), Net
Year ended December 31 (in millions)                                  2021        2020        2019
Equity in net income (losses) of investees, net                $  2,006    

$ (113) (505) $
Realized and unrealized gains (losses) on equity securities, net

                                                                 339       1,014         656
Other income (loss), net                                            211         259         287
Total investment and other income (loss), net                  $  2,557    

$1,160 $438



The change in investment and other income (loss), net in 2021 compared to 2020
was primarily due to equity in net income (losses) of investees, net related to
our investment in Atairos and realized and unrealized gains (losses) on equity
securities, net. The income (losses) at Atairos were driven by fair value
adjustments on its underlying investments with income (loss) of $1.8 billion,
$286 million and $(64) million 2021, 2020 and 2019, respectively. Realized and
unrealized gains (losses) on equity securities, net in 2021 primarily included
gains related to nonmarketable equity securities and losses on certain
marketable securities, compared to the prior year period which primarily
included gains on nonmarketable securities.
Consolidated Income Tax (Expense) Benefit


Our effective income tax rate in 2021 and 2020 was 27.5% and 23.9%,
respectively.
In 2021, the effective income tax rate included $498 million of expense relating
to the impact of tax law changes enacted in the United Kingdom in the second
quarter of 2021, which, among other provisions, will increase the corporate tax
rate to 25% from 19% effective April 1, 2023. The rate change resulted in an
increase in our net deferred tax liabilities and a corresponding increase in
income tax expense. Our income tax expense will reflect the new rate in the
United Kingdom in 2023.
In 2020, the effective income tax rate included $145 million of expense relating
to the impact of tax law changes in the third quarter of 2020.
Consolidated Net Income (Loss) Attributable to Noncontrolling Interests and Redeemable
Subsidiary Preferred Stock


The changes in net income (loss) attributable to noncontrolling interests and
redeemable subsidiary preferred stock in 2021 compared to 2020 was primarily due
to losses at Universal Beijing Resort, which increased due to pre-opening costs
prior to its opening in September 2021 (see Note 7).
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
as the measure of profit or loss for our operating segments.
See Note 2 for our definition of Adjusted EBITDA and a reconciliation from the
aggregate amount of Adjusted EBITDA for our reportable business segments to
consolidated income before income taxes.

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Cable Communications Segment Results of Operations


Revenue and Adjusted EBITDA      Residential Customer Relationships
(in billions)                    (in millions)

[[Image Removed: cmcsa-20211231_g9.jpg]]



                                                                                       % Change          % Change
Year ended December 31 (in millions)             2021        2020        2019      2020 to 2021      2019 to 2020
Revenue
Residential:
Broadband                                 $ 22,979    $ 20,599    $ 18,752              11.6  %            9.9  %
Video                                       22,079      21,937      22,270               0.6              (1.5)
Voice                                        3,417       3,532       3,879              (3.3)             (8.9)
Wireless                                     2,380       1,574       1,167              51.2              34.9
Business services                            8,933       8,191       7,795               9.1               5.1
Advertising                                  2,820       2,594       2,465               8.7               5.2
Other                                        1,719       1,624       1,754               5.9              (7.5)
Total revenue                               64,328      60,051      58,082               7.1               3.4
Operating costs and expenses
Programming                                 14,285      13,498      13,389               5.8               0.8
Technical and product support                8,566       8,022       7,973               6.8               0.6
Customer service                             2,347       2,432       2,494              (3.5)             (2.5)

Advertising, marketing and promotion 3,938 3,759 4,014

              4.8              (6.3)

Franchise fees and other regulatory fees 1,806 1,625 1,582

             11.1               2.7
Other                                        5,290       5,445       5,364              (2.8)              1.5

Total expenses and operating expenses 36,231 34,781 34,816

             4.2              (0.1)
Adjusted EBITDA                           $ 28,097    $ 25,270    $ 23,266              11.2  %            8.6  %

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Customer Metrics
                                                                                                 Net Additions / (Losses)
(in thousands)                                       2021          2020          2019             2021             2020          2019
Customer relationships
Residential customer relationships              31,728        30,692        29,123          1,036            1,569           1,040

Business services customer relations 2,489 2,426

  2,396             63               30              94
Total customer relationships                    34,218        33,119        31,519          1,099            1,599           1,134
Residential customer relationships mix
One product customers                           14,330        12,408        10,221          1,922            2,187           1,232
Two product customers                            8,407         8,734         8,923           (328)            (188)            (69)
Three or more product customers                  8,992         9,550         9,979           (558)            (429)           (123)
Broadband
Residential customers                           29,583        28,326        26,388          1,257            1,937           1,317
Business services customers                      2,318         2,248         2,215             70               34              89
Total broadband customers                       31,901        30,574        28,603          1,327            1,971           1,406
Video
Residential customers                           17,495        18,993        20,288         (1,498)          (1,295)           (671)
Business services customers                        681           852           966           (171)            (114)            (61)
Total video customers                           18,176        19,846        21,254         (1,669)          (1,408)           (733)
Voice
Residential customers                            9,062         9,645         9,934           (583)            (289)           (218)
Business services customers                      1,391         1,357         1,342             34               15              46
Total voice customers                           10,454        11,002        11,276           (548)            (275)           (173)

Wireless
Wireless lines                                   3,980         2,826         2,052          1,154              774             816


Customer metrics are presented based on actual amounts. Customer relationships
represent the number of residential and business customers that subscribe to at
least one of our services. One product, two product, and three or more product
customers represent residential customers that subscribe to one, two, or three
or more of our services, respectively. For multiple dwelling units ("MDUs"),
including buildings located on college campuses, whose residents have the
ability to receive additional services, such as additional programming choices
or our HD video or DVR services, we count and report customers based on the
number of potential billable relationships within each MDU. For MDUs whose
residents are not able to receive additional services, the MDU is counted as a
single customer. Residential broadband and video customer metrics include
certain customers that have prepaid for services. Business customers are
generally counted based on the number of locations receiving services within our
distribution system, with certain offerings such as Ethernet network services
counted as individual customer relationships. Wireless lines represent the
number of activated, eligible wireless devices on customers' accounts.
Individual customer relationships may have multiple wireless lines. Customer
metrics for 2021 and 2020 do not include customers in certain temporary COVID-19
programs, including an Internet Essentials promotion for new qualifying
customers to receive 60 days of free broadband services. This 60-day free
Internet Essentials promotional offer ended at the end of December 2021.
Customers under this program are excluded from our customer metrics until they
begin paying for their service. Total residential customer relationships and
broadband customers were updated in the first quarter of 2021 due to a
conforming change to methodology, resulting in a reduction of approximately
26,000 customers. There was no impact to net additions and information for all
periods presented have been recast on a comparable basis.
                                                                                       % Change 2021  % Change 2020
                                                         2021        2020        2019        to 2020        to 2019
Average monthly total revenue per customer
relationship                                      $ 159.22    $ 154.84    $ 156.37            2.8  %        (1.0) %
Average monthly Adjusted EBITDA per customer
relationship                                      $  69.55    $  65.16    $  62.64            6.7  %         4.0  %


Average monthly total revenue per customer relationship is impacted by rate
adjustments and changes in the types and levels of services received by our
residential and business services customers, as well as changes in advertising
revenue. While revenue from our residential broadband, video and voice services
is also impacted by changes in the allocation of revenue among services sold in
a bundle, the allocation does not impact average monthly total revenue per
customer relationship. Each of our services has a different contribution to
operating margin. We use average monthly Adjusted EBITDA per customer
relationship to evaluate the profitability of our customer base across our
service offerings. We believe both metrics are useful to understand the trends
in our business, and average monthly Adjusted EBITDA per customer relationship
is useful particularly as we continue to focus on growing our higher-margin
businesses.

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Cable Communications Segment - Revenue
We are a leading provider of broadband, video, voice, wireless, and other
services to residential customers in the United States under the Xfinity brand;
we also provide these and other services to business customers and sell
advertising. Our residential and business customers are marketed individually
and as bundled services at a discounted rate.
Residential
Revenue from our residential customers includes amounts earned for providing our
broadband, video, voice and wireless services, including equipment and
installation services. Broadband revenue also includes revenue earned related to
our customers' use of Flex and streaming services, and wireless revenue also
includes the sale of devices. Revenue from each of our residential services is
impacted by changes in the allocation of revenue among services sold in a
bundle. Franchise and regulatory fees billed to our customers are included with
the relevant service, which primarily relate to video and voice services.
Broadband
Revenue increased in 2021 primarily due to an increase in the number of
residential broadband customers. The remaining increase in revenue was due to an
increase in average rates. Average rates in 2020 were negatively impacted by
waived fees due to COVID-19 and the impacts of customer adjustments. Refer to
"Video" below for additional information.
We believe our customer base will continue to grow as consumers choose our
broadband service and seek higher-speed offerings.
Video
Revenue was flat in 2021 primarily due to a decline in the number of residential
video customers, offset by an increase in average rates. Average rates in 2020
were negatively impacted by customer adjustments accrued as a result of
provisions in our programming distribution agreements with regional sports
networks related to canceled sporting events. For customers receiving bundled
services, the revenue reduction was allocated across each of the services in the
bundle.
We expect that the number of residential video customers will continue to
decline, negatively impacting video revenue as a result of the competitive
environment and shifting video consumption patterns.
Voice
Revenue decreased in 2021 primarily due to a decline in the number of
residential voice customers, partially offset by increases in average rates.
We expect that the number of residential voice customers and voice revenue will
continue to decline.
Wireless
Revenue increased in 2021 primarily due to an increase in the number of customer
lines and device sales.
Business Services
Revenue from our business customers includes our service offerings for small
business locations, which primarily include broadband, voice and video services,
as well as our solutions for medium-sized customers and larger enterprises, and
cellular backhaul services to mobile network operators.
Revenue increased in 2021 primarily due to increases in average rates and an
increase in the number of customers receiving our services, which included the
negative impacts of COVID-19 on small businesses in the prior year period.
Advertising
Revenue consists of the sale of advertising on linear television and digital
platforms to local, regional and national advertisers, including where we
represent the advertising sales efforts of other multichannel video providers
and revenue from our advanced advertising business.
Revenue increased in 2021 reflecting an overall market recovery in the current
year period and increases in revenue from our advanced advertising business,
partially offset by decreases in political advertising compared to the prior
year period.
Other
Revenue primarily relates to our security and automation services and also
includes revenue related to residential customer late fees and related to other
services, such as the licensing of our technology platforms to other
multichannel video providers.
Revenue increased in 2021 primarily due to increases in revenue from licensing
of our technology platforms and from our security and automation services.
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Cable Communications Segment - Operating Costs and Expenses
Programming Expenses
Programming expenses, which represent our most significant operating expense,
are the fees we incur to provide content to our customers. These expenses
represent the programming license fees charged by content providers, including
the fees related to the distribution of cable and broadcast network programming
and fees charged for retransmission of the signals from local broadcast
television stations.
Expenses increased in 2021 primarily due to increases in retransmission consent
and sports programming rates, and the impacts in 2020 of adjustment provisions
in our programming distribution agreements with regional sports networks related
to canceled sporting events as a result of COVID-19. These increases were
partially offset by declines in the number of video subscribers.
We expect that our programming expenses will be impacted by rate increases,
although to a lesser extent in 2022 compared to 2021 due to the timing of
contract renewals, which will be offset by expected declines in the number of
residential video customers.
Technical and Product Support Expenses
Expenses include costs to complete service call and installation activities;
costs for network operations, product development, fulfillment and provisioning;
the cost of wireless handsets, tablets and smart watches sold to customers; and
monthly wholesale wireless access fees.
Expenses increased in 2021 primarily due to increased costs associated with our
wireless phone service from increases in the sale of devices and the number of
customers receiving service, partially offset by lower personnel costs.
Customer Service Expenses
Expenses include the personnel and other costs associated with handling the sale
of services to customers and customer service activity.
Expenses decreased in 2021 primarily due to lower labor costs as a result of
reduced call volumes.
Advertising, Marketing and Promotion Expenses
Expenses include the costs associated with attracting new customers and
promoting our service offerings.
Expenses increased in 2021 primarily due to increased spending associated with
attracting new customers and promoting our service offerings, including
advertising expenses associated with the Tokyo Olympics, as well as decreased
spending as a result of COVID-19 in the prior year period.
Franchise and Other Regulatory Fees
Expenses represent the fees we are required to pay to federal, state and local
authorities, including fees under the terms of our cable franchise agreements.
Expenses increased in 2021 primarily due to increases in regulatory costs.
Other Expenses
Expenses primarily include administrative personnel costs; fees paid to
third-party channels for which Cable represents the advertising sales efforts;
other business support costs, including building and office expenses, taxes and
billing costs; and bad debt.
Expenses decreased in 2021 primarily due to a decrease in bad debt expense.
Cable Communications Segment - Operating Margin
Our operating margin is Adjusted EBITDA as a percentage of revenue. We believe
this metric is useful particularly as we continue to focus on growing our
higher-margin businesses and improving overall operating cost management. Our
operating margin was 43.7%, 42.1% and 40.1% in 2021, 2020 and 2019,
respectively. While the accrued adjustments for regional sports networks did not
impact Adjusted EBITDA, they resulted in an increase to operating margins in
2020.

    43    Comcast 2021 Annual Report on Form 10-K

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  Table of Contents
NBCUniversal Segments Overview


2021 NBCUniversal Segment Operating Results(a)


   Revenue            Adjusted EBITDA
   (in billions)      (in billions)

[[Image Removed: cmcsa-20211231_g10.jpg]]

(a) Segment details in charts exclude NBCUniversal Corporate and Other results and eliminations and therefore amounts do not add up to totals. The revenue and adjusted EBITDA graphs are not presented on the same scale.

                                                                                             % Change                   % Change
Year ended December 31 (in millions)             2021        2020        2019            2020 to 2021               2019 to 2020
Revenue
Media                                     $ 22,780    $ 18,936    $ 19,947                    20.3  %                    (5.1) %

Studios                                      9,449       8,134       9,352                    16.2                      (13.0)
Theme Parks                                  5,051       2,094       6,213                   141.2                      (66.3)
Headquarters and Other                          87          53          31                    63.8                       69.6
Eliminations                                (3,048)     (2,006)     (1,585)                  (51.9)                     (26.6)
Total revenue                             $ 34,319    $ 27,211    $ 33,958                    26.1  %                   (19.9) %
Adjusted EBITDA
Media                                     $  4,569    $  5,574    $  5,834                   (18.0) %                    (4.5) %

Studios                                        884       1,041       1,058                   (15.1)                      (1.6)
Theme Parks                                  1,267        (477)      2,498                         NM                  (119.1)
Headquarters and Other                        (840)       (563)       (690)                  (49.3)                         18.4
Eliminations                                  (205)       (220)         11                     6.5                            NM
Total Adjusted EBITDA                     $  5,675    $  5,355    $  8,711                     6.0  %                   (38.5) %

Percentage changes that are not considered significant are indicated by NM. Comcast 2021 Annual Report on Form 10-K 44

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Media Segment Results of Operations


                                                                                              % Change                % Change
Year ended December 31 (in millions)              2021        2020        2019            2020 to 2021            2019 to 2020
Revenue
Advertising                                $ 10,291    $  8,296    $  9,267                    24.1  %                (10.5) %
Distribution                                 10,449       8,795       8,887                    18.8                    (1.0)
Other                                         2,040       1,845       1,793                    10.5                     2.9
Total revenue                                22,780      18,936      19,947                    20.3                    (5.1)
Operating costs and expenses
Programming and production                   13,337       9,319       9,907                    43.1                    (5.9)
Other operating and administrative            3,611       3,209       3,286                    12.5                    (2.3)

Advertising, marketing and promotion 1,264,834,920

                    51.4                    (9.3)
Total operating costs and expenses           18,212      13,362      14,113                    36.3                    (5.3)
Adjusted EBITDA                            $  4,569    $  5,574    $  5,834                   (18.0) %                 (4.5) %


Media Segment - Revenue
Advertising
Revenue consists of the sale of advertising on our television networks, Peacock
and digital properties.
                                                                                       % Change                % Change
Year ended December 31 (in millions)             2021        2020        2019      2020 to 2021            2019 to 2020
Advertising                               $ 10,291    $  8,296    $  9,267              24.1  %                (10.5) %

Advertising, excluding Tokyo Olympics 9,054 8,296 9,267

              9.1                   (10.5)


Revenue increased in 2021 compared to 2020 primarily due to our broadcast of the
Tokyo Olympics. Excluding $1.2 billion of revenue associated with our broadcast
of the Tokyo Olympics, advertising revenue increased due to higher pricing in
the current year period, reduced spending from advertisers in the prior year
period as a result of COVID-19, increased advertising revenue in Peacock and an
increased number of sporting events, partially offset by continued audience
ratings declines at our networks.
Revenue decreased in 2020 compared to 2019 primarily due to continued audience
rating declines at our networks and reduced spending from advertisers as a
result of COVID-19, including as a result of the reduced number of sporting
events, partially offset by higher prices for advertising units sold and
advertising revenue in Peacock following its launch in 2020.
Distribution
Revenue includes the fees received from the distribution of our cable and
broadcast television network programming to traditional and virtual multichannel
video providers and from NBC-affiliated and Telemundo-affiliated local broadcast
television stations. Distribution revenue also includes distribution revenue
associated with our periodic broadcasts of the Olympic Games and subscription
fees received from Peacock subscribers.
                                                                                        % Change          % Change
Year ended December 31 (in millions)              2021        2020        2019      2020 to 2021      2019 to 2020
Distribution                               $ 10,449    $  8,795    $  8,887              18.8  %           (1.0) %

Distribution, out Tokyo Olympics 9,928 8,795 8,887

              12.9              (1.0)


Revenue increased in 2021 compared to 2020, including the impact of our
broadcast of the Tokyo Olympics. Excluding $522 million of revenue associated
with our broadcast of the Tokyo Olympics, distribution revenue increased due to
contractual rates increases, increased distribution revenue at Peacock, and
credits accrued in 2020 at some of our regional sports networks from fewer games
played due to COVID-19 as certain of our distribution agreements with
multichannel video providers require contractual adjustments if a minimum number
of sporting events does not occur. This increase was partially offset by
declines in the number of subscribers at our networks.
Revenue decreased in 2020 compared to 2019 primarily due to declines in the
number of subscribers at our networks and credits accrued at some of our
regional sports networks resulting from the reduced number of games played by
professional sports leagues due to COVID-19, partially offset by contractual
rate increases.

45 Comcast 2021 Annual Report on Form 10-K

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Other
Revenue primarily relates to the licensing of our owned programming and revenue
generated by various digital properties.
Revenue increased in 2021 compared to 2020 primarily due to increased revenue
from our digital properties and increased content licensing.
Revenue increased in 2020 compared to 2019 primarily due to timing of content
provided under our licensing agreements, offset by decreased revenue from our
digital properties.
* * *
We expect the number of subscribers and audience ratings at our networks will
continue to decline as a result of the competitive environment and shifting
video consumption patterns. Media segment total revenue included $778 million
and $118 million related to Peacock in 2021 and 2020, respectively.
Media Segment - Operating Costs and Expenses
Programming and Production Costs
Expenses include the amortization of owned and licensed programming, including
sports rights, direct production costs, production overhead, on-air talent costs
and costs associated with the distribution of our programming to third-party
networks and other distribution platforms.
Expenses increased in 2021 primarily due to costs associated with our broadcast
of the Tokyo Olympics, higher programming costs at Peacock and higher costs
related to other sporting events due to COVID-19 timing impacts.
Expenses decreased in 2020 due to decreases in sports programming costs driven
by decreases in the number of sports events as a result of the postponement and
cancellation of events due to COVID-19, delays in airing of new programs and
cost saving initiatives, partially offset by higher programming costs at
Peacock.
Other Operating and Administrative Expenses
Expenses include salaries, employee benefits, rent and other overhead expenses.
Expenses increased in 2021 primarily due to increased costs related to Peacock,
partially offset by cost saving initiatives.
Expenses decreased in 2020 primarily due to decreased costs associated with our
digital properties and cost saving initiatives, partially offset by increased
costs related to Peacock.
Advertising, Marketing and Promotion Expenses
Expenses consist primarily of the costs associated with promoting content on our
networks, Peacock and digital properties, as well as costs associated with
promoting our platforms and digital properties.
Expenses increased in 2021 primarily due to higher marketing related to Peacock
and higher spending related to our networks.
Expenses decreased in 2020 primarily due to lower spending on marketing related
to our networks, partially offset by higher marketing expenses related to
Peacock.
* * *
Media segment total operating costs and expenses included $2.5 billion and
$781 million related to Peacock in 2021 and 2020, respectively. We expect to
continue to incur significant costs related to additional content and marketing
as we invest in the platform and attract new customers.
Comcast 2021 Annual Report on Form 10-K    46


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Studios Segment Results of Operations


                                                                                               % Change                % Change
Year ended December 31 (in millions)               2021        2020        2019            2020 to 2021            2019 to 2020
Revenue
Content licensing                           $  7,565    $  6,557    $  6,373                    15.4  %                  2.9  %
Theatrical                                       691         418       1,469                    65.4                   (71.6)
Home entertainment and other                   1,193       1,159       1,510                     2.9                   (23.2)

Total revenue                                  9,449       8,134       9,352                    16.2                   (13.0)
Operating costs and expenses
Programming and production                     6,820       5,413       5,903                    26.0                    (8.3)
Other operating and administrative               667         813         849                   (18.0)                   (4.1)
Advertising, marketing and promotion           1,078         867       1,542                    24.3                   (43.8)
Total operating costs and expenses             8,565       7,093       8,294                    20.7                   (14.5)
Adjusted EBITDA                             $    884    $  1,041    $  1,058                   (15.1) %                 (1.6) %


Studios Segment - Revenue
Content Licensing
Revenue relates to the licensing of our owned film and television content in the
United States and internationally to cable, broadcast and premium networks and
DTC streaming service providers, as well as through video on demand and
pay-per-view services provided by multichannel video providers and OTT service
providers.
Revenue increased in 2021 primarily due to the timing of when content was made
available by our television studios under licensing agreements, including
additional sales of content as production levels returned to normal in 2021 and
a new licensing agreement for content that became exclusively available for
streaming on Peacock in 2021, which more than offset the benefit from initial
content licenses associated with the launch of Peacock in 2020. Revenue in 2021
also was negatively impacted by delays in theatrical releases due to COVID-19
for our film studios.
Revenue increased in 2020 primarily due to the timing of when content was made
available under licensing agreements, including initial licenses of content
associated with the launch of Peacock, and increased sales of titles made
available on demand, including certain 2020 releases after theater closures due
to COVID-19, partially offset by decreases in revenue from our television
studios due to delays in production.
Theatrical
Revenue relates to the worldwide distribution of our films for exhibition in
movie theaters.
Revenue increased in 2021 primarily due to current year releases, including F9,
and the impact of theater closures as a result of COVID-19 in the prior year
period.
Revenue decreased in 2020 primarily due to theater closures as a result of
COVID-19.
Home Entertainment and Other
Revenue consists of the sale of content on DVDs and through digital distribution
services, as well as the production and licensing of live stage plays and the
distribution of filmed entertainment produced by third parties. The overall DVD
market continues to experience declines due to the maturation of the DVD format
from increasing shifts in consumer behavior toward digital distribution services
and subscription rental services, both of which generate less revenue per
transaction than DVD sales, as well as due to piracy.
Revenue increased in 2021 primarily due to increased sales of television titles
in the current year period.
Revenue decreased in 2020 primarily due to COVID-19, including from our live
stage plays, which were impacted by theater and entertainment venue closures,
and a reduced number of releases in 2020.

47 Comcast 2021 Annual Report on Form 10-K

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Studios Segment - Operating Costs and Expenses
Programming and Production Costs
Expenses include the amortization of capitalized film and television production
and acquisition costs, residuals and participations payments, and distribution
expenses. The costs associated with producing film and television content have
generally increased in recent years and may continue to increase in the future.
Expenses increased in 2021 due to higher costs associated with content licensing
sales, including the new licensing agreement for content that became exclusively
available for streaming on Peacock in 2021, higher costs associated with
theatrical releases in the current year period and the impact of updated
accounting guidance related to episodic television series, which was adopted and
had a favorable impact on programming and production expense in the prior year
period.
Expenses decreased in 2020 due to higher costs associated with theatrical
releases in 2019, lower production costs as a result of delays in production and
the impact of updated accounting guidance related to episodic television series,
partially offset by higher costs associated with content licensing sales.
Other Operating and Administrative Expenses
Expenses include salaries, employee benefits, rent and other overhead expenses.
Expenses decreased in 2021 primarily due to cost saving initiatives.
Expenses decreased in 2020 primarily due to lower costs associated with live
stage plays, which were impacted by theater and entertainment venue closures as
a result of COVID-19.
Advertising, Marketing and Promotion Expenses
Expenses consist primarily of expenses associated with advertising for our
theatrical releases and the marketing of DVDs. The costs associated with
marketing films have generally increased in recent years and may continue to
increase in the future.
Expenses increased in 2021 primarily due to higher spending on theatrical film
releases in the current year period.
Expenses decreased in 2020 primarily due to lower spending on theatrical film
releases as a result of COVID-19.
Theme Parks Segment Results of Operations


                                                                                             % Change                % Change
Year ended December 31 (in millions)             2021        2020        2019            2020 to 2021            2019 to 2020
Revenue                                   $  5,051    $  2,094    $  6,213                   141.2  %                (66.3) %
Operating costs and expenses                 3,783       2,571       3,715                    47.1                   (30.8)
Adjusted EBITDA                           $  1,267    $   (477)   $  2,498                         NM               (119.1) %


Theme Parks Segment - Revenue
Revenue primarily relates to guest spending at our theme parks, including ticket
sales and in-park spending and our consumer products business.
Revenue increased in 2021 primarily due to improved operating conditions
compared to 2020 when each of our theme parks were either operating at a limited
capacity or closed as a result of COVID-19 and from the operations of Universal
Beijing Resort, which opened in September 2021. All of our theme parks
temporarily closed beginning in mid to late first quarter of 2020. Our theme
park in Orlando reopened with capacity restrictions in the second quarter of
2020 and began operating without capacity restrictions during the second quarter
of 2021. Our theme park in Hollywood reopened with capacity restrictions early
in the second quarter of 2021 and began operating without capacity restrictions
by the end of that quarter. Our theme park in Japan reopened with capacity
restrictions in the second quarter of 2020, had a temporary closure in the
second quarter of 2021 and began operating without capacity restrictions in the
fourth quarter of 2021. Our newest theme park in Beijing opened in September
2021 with capacity restrictions.
Revenue decreased in 2020 due to the temporary closures and capacity
restrictions at our theme parks as a result of COVID-19.
Comcast 2021 Annual Report on Form 10-K    48


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Theme Parks Segment - Operating Costs and Expenses
Expenses consist primarily of theme park operations, including repairs and
maintenance and related administrative expenses; food, beverage and merchandise
costs; labor costs; and sales and marketing costs.
Expenses increased in 2021 primarily due to increased operating costs at our
theme parks, as compared to the temporary closures and capacity restrictions in
the prior year period. Expenses also include increased pre-opening costs and
operating costs associated with Universal Beijing Resort.
Expenses decreased in 2020 primarily due to temporary closures and capacity
restrictions and lower marketing-related costs, partially offset by pre-opening
costs associated with Universal Beijing Resort.
NBCUniversal Headquarters, Other and Eliminations


Headquarters and other operating results

                                                                        % Change       % Change
Year ended December 31 (in millions)       2021     2020     2019   2020 to 2021   2019 to 2020
Revenue                                $   87   $   53   $   31          63.8  %        69.6  %
Operating costs and expenses              927      616      721          50.5          (14.5)
Adjusted EBITDA                        $ (840)  $ (563)  $ (690)        (49.3) %        18.4  %

Expenses include overhead, personnel costs and costs associated with corporate initiatives, which were impacted by COVID-19 in 2020. Eliminations

                                                                                       % Change          % Change
Year ended December 31 (in millions)             2021        2020        2019      2020 to 2021      2019 to 2020
Revenue                                   $ (3,048)   $ (2,006)   $ (1,585)             51.9  %           26.6  %
Operating costs and expenses                (2,843)     (1,786)     (1,596)             59.0              12.0
Adjusted EBITDA                           $   (205)   $   (220)   $     11              (6.5) %                NM


Amounts represent eliminations of transactions between our NBCUniversal
segments, which are affected by the timing of recognition of content licenses
between our Studios and Media segments. Current year amounts include the impact
of a new licensing agreement for content that became exclusively available for
streaming on Peacock during the first quarter of 2021, and prior year amounts
include the impacts of initial licenses of content associated with the launch of
Peacock.
For the years ended 2021, 2020 and 2019, approximately 42%, 34% and 27%,
respectively, of Studios segment content licensing revenue resulted from
transactions with other segments, primarily with the Media segment. Eliminations
will increase or decrease to the extent that additional content is made
available to our other segments. Refer to Note 2 for further discussion of
transactions between our segments.
Sky Segment Results of Operations


                                                                                     % Change                  % Change
                                                    2021        2020    2019       2020 to 2021              2019 to 2020
                                                                                                                            Constant                      Constant
                                                                                                                            Currency                      Currency
Year ended December 31 (in millions)              Actual      Actual      Actual                              Actual       Change(a)        Actual       Change(a)
Revenue
Direct-to-consumer                           $ 16,455    $ 15,223    $ 15,538                                 8.1  %          2.0  %       (2.0) %         (3.0) %
Content                                         1,341       1,373       1,432                                (2.3)           (7.4)         (4.1)           (4.9)
Advertising                                     2,489       1,998       2,249                                24.6            18.4         (11.2)          (12.0)
Total revenue                                  20,285      18,594      19,219                                 9.1             3.1          (3.3)           (4.2)
Operating costs and expenses
Programming and production                      8,949       8,649       8,865                                 3.5            (1.3)         (2.4)           (3.5)
Direct network costs                            2,612       2,086       1,746                                25.2            17.1          19.5            18.6
Other                                           6,364       5,905       5,509                                 7.8             2.0           7.2             6.3
Total operating costs and expenses             17,925      16,640      16,120                                 7.7             2.2           3.2             2.2
Adjusted EBITDA                              $  2,359    $  1,954    $  3,099                                20.8  %         10.2  %      (37.0) %        (37.6) %


    49    Comcast 2021 Annual Report on Form 10-K


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(a)Constant currency is a non-GAAP financial measure. Refer to the "Non-GAAP
Financial Measures" section on page 52 for additional information, including our
definition and our use of constant currency, and for a reconciliation of Sky's
constant currency growth rates.
Customer Metrics
                                                                   Net Additions / (Losses)
                                      2021      2020      2019        2021        2020     2019
(in thousands)                      Actual    Actual    Actual      Actual      Actual   Actual
Total customer relationships      23,027    23,224    23,280     (198)        (56)        394


Customer metrics are presented based on actual amounts. Customer relationships
represent the number of residential customers that subscribe to at least one of
Sky's four primary services of video, broadband, voice and wireless phone
service. Sky reports business customers, including hotels, bars, workplaces and
restaurants, generally based on the number of locations receiving our services.
In the first quarter of 2021, we implemented conforming changes to our
methodology for counting commercial customers in Italy and Germany, which are
counted as described above, consistent with the methodology for customers in the
United Kingdom. Previously, customers were counted based on a residential
equivalent unit in Italy or the number of active venues or rooms in Germany.
This change resulted in a reduction in Sky's total customer relationships of
714,000 as of December 31, 2020. The impact of the change in methodology to
customer relationship net additions for any period was not material. For
comparative purposes, we have updated Sky's historical total customer
relationships and average monthly direct-to-consumer revenue per customer
relationship to reflect this adjustment.
                                             2021       2020       2019      % Change 2020 to 2021            % Change 2019 to 2020
                                                                                                Constant                         Constant
                                                                                                Currency                         Currency
                                           Actual     Actual     Actual    

Actual growth(a) Actual growth(a) Average monthly direct-to-consumer revenue per customer relationship $59.29 $54.56 $56.09

            8.7  %            2.6  %        (2.7) %           (3.7) %


(a)Constant currency is a non-GAAP financial measure. Refer to the "Non-GAAP
Financial Measures" section on page 52 for additional information, including our
definition and our use of constant currency, and for a reconciliation of Sky's
constant currency growth rates.
Average monthly direct-to-consumer revenue per customer relationship is impacted
by rate adjustments and changes in the types and levels of services received by
Sky's customers. Each of Sky's services has a different contribution to Adjusted
EBITDA. We believe average monthly direct-to-consumer revenue per customer
relationship is useful in understanding the trends in our business across all of
our direct-to-consumer service offerings.
Sky Segment - Revenue
Direct-to-Consumer
Revenue primarily relates to video services provided to both residential and
business customers, as well as broadband, voice and wireless services. Video
service revenue includes both DTH video services and our NOW streaming service.
Revenue from our wireless customers also includes the sale of devices.
Revenue increased in 2021 compared to 2020. Excluding the impact of foreign
currency, revenue increased primarily due to an increase in average revenue per
customer relationship. This increase reflected the impacts of the postponement
of sporting events in the prior year period as a result of COVID-19, an increase
in the sale of wireless handsets and rate increases in the United Kingdom, which
were partially offset by declines in average rates in Italy. Customer
relationships remained relatively consistent with the prior year period as
decreases in Italy were offset by increases in the United Kingdom and Germany.
The declines in customer relationships and average revenue per customer
relationship in Italy primarily resulted from reduced broadcast rights for Serie
A, which we had held through the end of the 2020-21 season. Beginning with the
2021-22 season in the third quarter of 2021 and through the 2023-24 season, we
have nonexclusive broadcast rights to fewer matches, which has resulted and we
expect will continue to result in declines in revenue and customer relationships
in Italy.
Content
Revenue relates to the distribution of our owned television channels on
third-party platforms and the licensing of owned and licensed content.
Revenue decreased in 2021 compared to 2020. Excluding the impact of foreign
currency, revenue decreased primarily due to lower sports programming licensing
revenue driven by changes in licensing agreements in Italy and Germany,
partially offset by higher revenue from the distribution of Sky's sports
programming on third-party platforms due to the impacts of COVID-19 in the prior
year period.

Comcast 2021 Annual Report on Form 10-K 50

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Advertising
Revenue consists of the sale of advertising on linear television and digital
platforms, including where we represent the sales efforts of third-party
channels, as well revenue from various technology, tools and solutions relating
to our advertising business.
Revenue increased in 2021 compared to 2020. Excluding the impact of foreign
currency, revenue increased primarily reflecting an overall market recovery
compared to the prior year period.
Sky Segment - Operating Costs and Expenses
Programming and Production Costs
Expenses primarily relate to content broadcast on our channels. These costs
include the amortization of owned and licensed programming, including sports
rights, direct production costs, production overhead and on-air talent costs.
These expenses also include the fees associated with programming distribution
agreements for channels owned by third parties.
Expenses increased in 2021 compared to 2020. Excluding the impact of foreign
currency, expenses decreased primarily due to lower costs associated with Serie
A and entertainment programming in the current year period, partially offset by
an increase in the number of sporting events in the current year period due to
COVID-19, which delayed the starts of the 2020-21 European football seasons.
Direct Network Costs
Expenses primarily include costs directly related to the supply of broadband and
voice services, including wireless services for wireless handsets and tablets,
to our customers. This includes call costs, monthly wholesale access fees and
other variable costs associated with our network. In addition, it includes the
cost of wireless handsets sold to customers.
Expenses increased in 2021 compared to 2020. Excluding the impact of foreign
currency, expenses increased primarily due to an increase in costs associated
with Sky's wireless phone and broadband services as a result of increases in the
sale of wireless handsets and the number of customers receiving these services.
Other Expenses
Expenses include costs related to marketing, fees paid to third-party channels
for which Sky represents the advertising sales efforts, subscriber management,
supply chain, transmission, technology, fixed networks and general
administrative costs.
Expenses increased in 2021 compared to 2020. Excluding the impact of foreign
currency, expenses increased primarily due to higher fees paid to third-party
channels related to advertising sales, partially offset by lower personnel
costs.
Corporate, Other and Eliminations


Corporate operating results and others



                                                                                             % Change                % Change
Year ended December 31 (in millions)             2021        2020        2019            2020 to 2021            2019 to 2020
Revenue                                   $    461    $    248    $    333                    86.1  %                (25.6) %
Operating costs and expenses                 1,819       2,033       1,153                   (10.5)                   76.3

Adjusted EBITDA                           $ (1,358)   $ (1,785)   $   (820)                   23.9  %               (117.8) %


Corporate and other primarily includes overhead and personnel costs, the results
of other business initiatives and Comcast Spectacor, which owns the Philadelphia
Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania. Other
business initiatives include costs associated with the launch of Sky Glass and
the related hardware sales, as well as costs associated with the launch of
XClass TV.
Revenue increased in 2021 primarily due to increases at Comcast Spectacor as a
result of the impacts of COVID-19 in the prior year period and sales of Sky
Glass televisions.
Expenses decreased in 2021 primarily due to costs incurred in the prior year
periods in response to COVID-19, including severance charges related to our
businesses, partially offset by costs related to Sky Glass and XClass TV. In
2020, our businesses implemented separate cost savings initiatives, with the
most significant relating to severance at NBCUniversal in connection with the
realignment of the operating structure in our television businesses as well as
overall reductions in the cost base. The costs of these initiatives were
presented in Corporate and Other. Payments related to NBCUniversal employee
severance were substantially complete in 2021 and the substantial majority of
the related costs savings were being realized in operating costs and expenses as
of the end of 2021. A portion of these cost savings may be reallocated to
investments in content and other strategic initiatives. We expect to incur
increased costs in 2022 related to the launch of Sky Glass and XClass TV.

51 Comcast 2021 Annual Report on Form 10-K

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Eliminations


                                                                                       % Change          % Change
Year ended December 31 (in millions)             2021        2020        2019      2020 to 2021      2019 to 2020
Revenue                                   $ (3,008)   $ (2,540)   $ (2,650)             18.5  %           (4.2) %
Operating costs and expenses                (2,942)     (2,572)     (2,652)             14.4              (3.1)
Adjusted EBITDA                           $    (65)   $     32    $      2    NM                NM


Percentage changes that are considered not meaningful are denoted with NM.
Amounts represent eliminations of transactions between Cable Communications,
NBCUniversal, Sky and other businesses. Eliminations of transactions between
NBCUniversal are presented separately. Current year amounts reflect an increase
in eliminations associated with the Tokyo Olympics. Refer to Note 2 for a
description of transactions between our segments.
                          Non-GAAP Financial Measures


Consolidated Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure and is the primary basis used to
measure the operational strength and performance of our businesses as well as to
assist in the evaluation of underlying trends in our businesses. 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. It is
also unaffected by our capital and tax structures, and by our investment
activities, including the results of entities that we do not consolidate, as our
management excludes these results when evaluating our operating performance. Our
management and Board of Directors use this financial 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. Additionally, we believe that Adjusted EBITDA 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
of Adjusted EBITDA may not be directly comparable to similar measures used by
other companies.
We define Adjusted EBITDA as net income attributable to Comcast Corporation
before net income (loss) attributable to noncontrolling interests and redeemable
subsidiary preferred stock, income tax expense, investment and other income
(loss), net, interest expense, depreciation and amortization expense, and other
operating gains and losses (such as impairment charges related to fixed and
intangible assets and gains or losses on the sale of long-lived assets), if any.
From time to time we may exclude from Adjusted EBITDA the impact of certain
events, gains, losses or other charges (such as significant legal settlements)
that affect the period-to-period comparability of our operating performance.
We reconcile consolidated Adjusted EBITDA to net income attributable to Comcast
Corporation. This measure should not be considered a substitute for operating
income (loss), net income (loss), net income (loss) attributable to Comcast
Corporation, or net cash provided by operating activities that we have reported
in accordance with GAAP.
Reconciliation from Net Income Attributable to Comcast Corporation to Adjusted EBITDA
Year ended December 31 (in millions)                                     2021        2020        2019
Net income attributable to Comcast Corporation                    $ 14,159  

$10,534 $13,057
Net income (loss) attributable to non-controlling interests and redeemable preferred shares of subsidiaries

                                 (325)        167         266
Income tax expense                                                   5,259       3,364       3,673
Investment and other (income) loss, net                             (2,557)     (1,160)       (438)
Interest expense                                                     4,281       4,588       4,567
Depreciation                                                         8,628       8,320       8,663
Amortization                                                         5,176       4,780       4,290

Adjustments(a)                                                          87         233         180

Adjusted EBITDA                                                   $ 34,708    $ 30,826    $ 34,258

(a) Amounts represent the impacts of certain events, gains, losses or other charges that are excluded from Adjusted EBITDA, including costs related to the Sky transaction and costs related to our investment portfolio. The year to date 2020 also includes $177 million related to a legal settlement. Comcast 2021 Annual Report on Form 10-K 52

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Constant Currency
Constant currency and constant currency growth rates are non-GAAP financial
measures that present our results of operations excluding the estimated effects
of foreign currency exchange rate fluctuations. Certain of our businesses,
including Sky, have operations outside the United States that are conducted in
local currencies. As a result, the comparability of the financial results
reported in U.S. dollars is affected by changes in foreign currency exchange
rates. In our Sky segment, we use constant currency and constant currency growth
rates to evaluate the underlying performance of the business, and we believe it
is helpful for investors to present operating results on a comparable basis year
over year to evaluate its underlying performance.
Constant currency and constant currency growth rates are calculated by comparing
the prior year results adjusted to reflect the average exchange rates from the
current year rather than the actual exchange rates that were in effect during
the respective prior year.
Reconciliation of Sky Constant Currency Growth Rates
                                                                     % Change 2020 to                               % Change 2019 to
                                                    2021        2020             2021              2020        2019             2020
Year ended December 31 (in millions, except                 Constant         Constant                      Constant         Constant
per customer data)                                Actual    Currency  Currency Change            Actual    Currency  Currency Change
Revenue
Direct-to-consumer                           $ 16,455    $ 16,125              2.0  %       $ 15,223    $ 15,698             (3.0) %
Content                                         1,341       1,448             (7.4)            1,373       1,443             (4.9)
Advertising                                     2,489       2,101             18.4             1,998       2,270            (12.0)
Total revenue                                  20,285      19,675              3.1            18,594      19,411             (4.2)
Operating costs and expenses
Programming and production                      8,949       9,064             (1.3)            8,649       8,967             (3.5)
Direct network costs                            2,612       2,230             17.1             2,086       1,759             18.6
Other                                           6,364       6,239              2.0             5,905       5,556              6.3
Total operating costs and expenses             17,925      17,533              2.2            16,640      16,282              2.2
Adjusted EBITDA                              $  2,359    $  2,142             10.2  %       $  1,954    $  3,129            (37.6) %
Average monthly direct-to-consumer revenue
per customer relationship                    $  59.29    $  57.79              2.6  %       $  54.56    $  56.67             (3.7) %


Cash and capital resources

Year ended the 31st of December (in millions) 2021 2020 2019 Cash flow generated by operating activities $29,146 $24,737 $25,697
Cash flows used in investing activities (13,446) (12,047) (14,841) Cash flows used in financing activities (18,618) (6,513) (9,181)


December 31 (in millions)             2021       2020
Cash and cash equivalents       $  8,711   $ 11,740
Short-term and long-term debt   $ 94,850    103,760


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 facility; and our
ability to obtain future external financing. Refer to "Contractual Obligations"
discussion below for additional information regarding our cash requirements. We
anticipate that we will continue to use a substantial portion of our cash flows
from operating activities in repaying our debt obligations, funding our capital
expenditures and cash paid for intangible assets, investing in business
opportunities, and returning capital to shareholders.
We maintain significant availability under our revolving credit facility and our
commercial paper program to meet our short-term liquidity requirements. Our
commercial paper program provides a lower-cost source of borrowing to fund our
short-term working capital requirements. As of December 31, 2021, amounts
available under our revolving credit facility, net of amounts outstanding under
our commercial paper program and outstanding letters of credit and bank
guarantees, totaled $11.0 billion. We entered into a new revolving credit
facility in March 2021 (see Note 6).

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We are subject to customary covenants and restrictions set forth in agreements
related to debt issued at Comcast and certain of our subsidiaries, including the
indentures governing our public debt securities and the credit agreement
governing the Comcast revolving credit facility. Our credit facility contains a
financial covenant pertaining to leverage, which is the ratio of debt to EBITDA,
as defined in the credit facility. Compliance with this financial covenant is
tested on a quarterly basis under the terms of the credit facility. As of
December 31, 2021, we met this financial covenant by a significant margin and we
expect to remain in compliance with this financial covenant and other covenants
related to our debt. The covenants and restrictions in our revolving credit
facility do not apply to certain entities, including Sky and our international
theme parks.
Operating Activities
Components of Net Cash Provided by Operating Activities
Year ended December 31 (in millions)                2021       2020       2019
Operating income                              $ 20,817   $ 17,493   $ 21,125
Depreciation and amortization                   13,804     13,100     12,953
Noncash share-based compensation                 1,315      1,193      

1,021

Change in operating assets and liabilities (1,499) (178) (2,335) Interest payments

                            (3,908)    (3,878)    

(4,254)

Payments of income taxes                        (2,628)    (3,183)    

(3,231)

Proceeds from investments and other              1,246        190        

418

Net cash flow generated by operating activities $29,146 $24,737 $25,697



The decrease resulting from changes in operating assets and liabilities in 2021
compared to 2020 was primarily related to the timing of amortization and related
payments for our film and television costs, including increased production
spending, offset by an increased number of sporting events in 2021, as well as
increases in accounts receivable and decreases in deferred revenue, which
included the impacts of our broadcast of the Tokyo Olympics. These decreases
were partially offset by increases related to the operations of our theme parks.
The decrease in income tax payments in 2021 was primarily due to the tax
deductions resulting from our senior notes exchange (refer to "Financing
Activities" below for additional information), which reduced tax payments by
$1.3 billion in the current year period and more than offset the higher taxable
income from operations in 2021.
The increase in proceeds from investments and other in 2021 was primarily due to
increased cash distributions received from equity method investments (see Note
8).
Investing Activities
Our most significant recurring investing activity has been capital expenditures,
which are discussed further below. The increase in cash used in investing
activities in 2021 compared to 2020 was primarily due to proceeds received from
the sale of our investment in AirTouch in 2020, the acquisition of Masergy in
2021 and increased cash paid for intangible assets related to software
development, partially offset by decreases in purchases of investments,
decreases in costs related to the construction of Universal Beijing Resort and
the purchase of spectrum in the prior year period.
Capital Expenditures
Capital expenditures were flat in 2021 primarily due to reduced spending in our
Theme Parks segment as a result of COVID-19, offset by increases in spending in
our Cable Communications segment. The costs associated with the construction of
Universal Beijing Resort are presented separately in our consolidated statement
of cash flows. See Note 7.
Our most significant capital expenditures are in our Cable Communications
segment, and we expect that this will continue in the future. Cable
Communications' capital expenditures increased primarily due to increased
spending on scalable infrastructure and line extensions, partially offset by
decreased spending on customer premise equipment and support capital. The table
below summarizes the capital expenditures we incurred in our Cable
Communications segment in 2021, 2020 and 2019.
Year ended December 31 (in millions)        2021      2020      2019
Customer premise equipment             $ 2,203   $ 2,333   $ 2,659
Scalable infrastructure                  2,658     2,289     2,000
Line extensions                          1,565     1,394     1,392
Support capital                            503       589       858
Total                                  $ 6,930   $ 6,605   $ 6,909


We expect our capital expenditures for 2022 will be focused on the increased
investment in scalable infrastructure to increase network capacity and in line
extensions for the expansion of both business services and residential in our
Cable
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Communications segment; and the continued deployment of wireless gateways, X1
and Sky Q. In addition, we expect to continue investment in existing and new
attractions at our Universal theme parks in the future, including the
development of our additional theme park in Orlando, Florida, which resumed in
2021. Capital expenditures for subsequent years will depend on numerous factors,
including competition, changes in technology, regulatory changes, the timing and
rate of deployment of new services, the capacity required for existing services,
the timing of new attractions at our theme parks and potential acquisitions.
Financing Activities
Net cash used in financing activities in 2021 consisted primarily of repayments
of debt and the related early redemption payments presented in other financing
activities, repurchases of common stock under our share repurchase program and
employee plans, dividend payments, and payments related to the redemption of
NBCUniversal Enterprise redeemable subsidiary preferred stock presented in other
financing activities, partially offset by proceeds from borrowings. Net cash
used in financing activities in 2020 consisted primarily of repayments of debt
and the related early redemption payments presented in other financing
activities, dividend payments, and payments related to the redemption and
repayment of subsidiary preferred shares in the second quarter of 2020 presented
in other financing activities, partially offset by proceeds from borrowings and
proceeds from the settlement of cross-currency swaps related to our debt
presented in other financing activities.
In August 2021, we completed a debt exchange transaction. We issued $15.0
billion aggregate principal amount of new senior notes, which have maturities
ranging from 2051 to 2063 and a weighted-average interest rate of 2.93%, and
made cash payments of $0.5 billion in exchange for $11.2 billion aggregate
principal amount of certain series of outstanding senior notes with maturities
ranging from 2033 to 2058 and a weighted-average interest rate of 5.04%. The
debt exchange resulted in an overall reduction in the weighted-average interest
rate for our total outstanding debt of 0.27% and extended the overall
weighted-average maturity by 2 years. The debt exchange transaction was
accounted for as a debt modification, and therefore following the exchange, the
book value of the new senior notes is equal to the book value of the exchanged
senior notes reduced by the amount of the cash payments, and the difference
between the principal and carrying amounts of the new senior notes will accrue
through interest expense over the period to maturity of the new senior notes.
In 2021, we made debt repayments of $11.5 billion, including $4.9 billion of
optional repayments of term loans due 2022 to 2023 and the early redemption of
$3.3 billion of senior notes maturing in 2024 and 2025, as well as amounts due
at maturity and the cash payments in the debt exchange transaction.
In 2021, we issued €1.75 billion ($2.1 billion using exchange rates on the date
of issuance) aggregate principal amount of fixed-rate Euro senior notes maturing
in 2026 and 2029. In 2021, we had borrowings of $0.6 billion under the Universal
Beijing Resort term loan.
We have made, and may from time to time in the future make, optional repayments
on our debt obligations, which may include repurchases or exchanges of our
outstanding public notes and debentures, depending on various factors, such as
market conditions. Any such repurchases may be effected through privately
negotiated transactions, market transactions, tender offers, redemptions or
otherwise. See Notes 6 and 7 for additional information on our financing
activities.
Share Repurchases and Dividends
In the second quarter of 2021, we restarted our share repurchase program, which
had been paused since the beginning of 2019. Effective May 25, 2021, our Board
of Directors increased our share repurchase program authorization to $10
billion. During 2021, we repurchased a total of 73.2 million shares of our Class
A common stock for $4.0 billion. In January 2022, our Board of Directors
increased our share repurchase program authorization from the $6 billion
remaining as of December 31, 2021 to $10 billion. Under the authorization, which
does not have an expiration date, we expect to repurchase additional shares,
which may be in the open market or in private transactions.
Our Board of Directors declared quarterly dividends totaling $4.6 billion in
2021. We paid dividends of $4.5 billion in 2021. In January 2022, our Board of
Directors approved an 8% increase in our dividend to $1.08 per share on an
annualized basis. We expect to continue to pay quarterly dividends, although
each dividend is subject to approval by our Board of Directors.
The chart below summarizes our share repurchases under our publicly announced
share repurchase program authorization and dividends paid in 2021, 2020 and
2019. In addition, we paid $674 million and $534 million in 2021 and 2020,
respectively, related to employee taxes associated with the administration of
our share-based compensation plans.



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Share Repurchases Under Share Repurchase Program Authorization and Dividends Paid
(in billions)


[[Image Removed: cmcsa-20211231_g11.jpg]]



Contractual Obligations
The following table summarizes our most significant contractual obligations as
of December 31, 2021:
                                                                                  Within the     Beyond the
As of December 31, 2021 (in billions)                                   Total next 12 months next 12 months
Debt obligations(a)                                                $ 100.8    $       2.1    $      98.7
Programming and production obligations                                75.7           15.4           60.4



(a) Amounts represent the face value of debt and exclude interest payments and a
collateralized obligation (see Note 8).
Our largest contractual obligations relate to our outstanding debt. As of
December 31, 2021, our debt has a weighted-average time to maturity of
approximately 18 years and a weighted-average interest rate based on the stated
coupons and including the effects of our derivative financial instruments of
3.44%. We typically fund and expect to continue to be able to fund debt
maturities and interest payments with cash flows generated in our operations;
existing cash, cash equivalents and investments; or proceeds from additional
external financing. See Note 6 for additional information on our debt.
We also have significant contractual obligations associated with our programming
and production expenses. NBCUniversal and Sky have multiyear agreements for
broadcast rights of sporting events, such as the Olympics, the NFL and European
football leagues, which represent the substantial majority of our programming
and production obligations. Cable Communications' programming expenses related
to the distribution of third-party programmed channels are generally acquired
under multiyear distribution agreements, with fees typically based on the number
of customers that receive the programming and the extent of distribution. As a
result, the amounts included in the table above under fixed or minimum
guaranteed commitments for these distribution agreements are not material and we
expect the total fees to be paid under these arrangements to be significantly
higher than the amounts included above. We have funded and expect to continue to
be able to fund our programming and production obligations with the cash
generated from our operations. As of December 31, 2021, approximately 40% of
cash payments related to our programming and production obligations are due
after five years, primarily related to multiyear sports rights agreements. See
Note 4 for additional information on programming and production costs.
Our other contractual obligations relate primarily to operating leases (see Note
15) and other arrangements recorded in our balance sheet and/or disclosed in the
notes to our financial statements, including benefit plan obligations (see Note
11), liabilities for uncertain tax positions (see Note 5), our remaining
unfunded capital commitment to Atairos (see Note 8) and a contractual obligation
related to an interest held by a third party in the revenue of certain theme
parks (see Note 15).
Guarantee Structure
Our debt is primarily issued at Comcast, although we also have debt at certain
of our subsidiaries as a result of acquisitions and other issuances. A
substantial amount of this debt is subject to guarantees by Comcast and by
certain subsidiaries that we have put in place to simplify our capital
structure. We believe this guarantee structure provides liquidity benefits to
debt investors and helps to simplify credit analysis with respect to relative
value considerations of guaranteed subsidiary debt.
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Debt and Guarantee Structure
December 31 (in billions)                                                      2021            2020
Debt Subject to Cross-Guarantees
Comcast                                                             $       85.9    $       85.7
Comcast Cable(a)                                                             2.1             2.1
NBCUniversal(a)                                                              1.6             2.8
                                                                            89.6            90.6
Debt Subject to One-Way Guarantees
Sky                                                                          6.3             8.4
Other(a)                                                                     0.1             2.8
                                                                             6.5            11.2
Debt Not Guaranteed
Universal Beijing Resort(b)                                                  3.6             2.5
Other                                                                        1.2             1.1
                                                                             4.7             3.6

Debt issue costs, premiums, discounts, fair value adjustments for acquisition accounting and hedged positions, net

(6.0)           (1.6)
Total debt                                                          $       94.8    $      103.8


(a)NBCUniversal, Comcast Cable and Comcast Holdings (included within other debt
subject to one-way guarantees) are each consolidated subsidiaries subject to the
periodic reporting requirements of the SEC. The guarantee structures and related
disclosures in this section, together with Exhibit 22, satisfy these reporting
obligations.
(b)Universal Beijing Resort debt financing is secured by the assets of Universal
Beijing Resort and the equity interests of the investors. See Note 7 for
additional information.
Cross-Guarantees
Comcast, NBCUniversal and Comcast Cable (the "Guarantors") fully and
unconditionally, jointly and severally, guarantee each other's debt securities.
NBCUniversal and Comcast Cable also guarantee other borrowings of Comcast,
including its revolving credit facility. These guarantees rank equally with all
other general unsecured and unsubordinated obligations of the respective
Guarantors. However, the obligations of the Guarantors under the guarantees are
structurally subordinated to the indebtedness and other liabilities of their
respective non-guarantor subsidiaries. The obligations of each Guarantor are
limited to the maximum amount that would not render such Guarantor's obligations
subject to avoidance under applicable fraudulent conveyance provisions of U.S.
and non-U.S. law. Each Guarantor's obligations will remain in effect until all
amounts payable with respect to the guaranteed securities have been paid in
full. However, a guarantee by NBCUniversal or Comcast Cable of Comcast's debt
securities, or by NBCUniversal of Comcast Cable's debt securities, will
terminate upon a disposition of such Guarantor entity or all or substantially
all of its assets.
The Guarantors are each holding companies that principally hold investments in,
borrow from and lend to non-guarantor subsidiary operating companies; issue and
service third-party debt obligations; repurchase shares and pay dividends; and
engage in certain corporate and headquarters activities. The Guarantors are
generally dependent on non-guarantor subsidiary operating companies to fund
these activities.
As of December 31, 2021 and 2020, the combined Guarantors have noncurrent notes
payable to non-guarantor subsidiaries of $126 billion and $124 billion,
respectively, and noncurrent notes receivable from non-guarantor subsidiaries of
$30 billion and $26 billion, respectively. This financial information is that of
the Guarantors presented on a combined basis with intercompany balances between
the Guarantors eliminated. The combined financial information excludes financial
information of non-guarantor subsidiaries. The underlying net assets of the
non-guarantor subsidiaries are significantly in excess of the Guarantor
obligations. Excluding investments in non-guarantor subsidiaries, external debt
and the noncurrent notes payable and receivable with non-guarantor subsidiaries,
the Guarantors do not have material assets, liabilities or results of
operations.
One-Way Guarantees
Comcast provides full and unconditional guarantees of certain debt issued by Sky
and other consolidated subsidiaries not subject to the periodic reporting
requirements of the SEC.

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Comcast also provides a full and unconditional guarantee of $138 million
principal amount of subordinated debt issued by Comcast Holdings. Comcast's
obligations under this guarantee are subordinated and subject, in right of
payment, to the prior payment in full of all of Comcast's senior indebtedness,
including debt guaranteed by Comcast on a senior basis; and are structurally
subordinated to the indebtedness and other liabilities of its non-guarantor
subsidiaries (for purposes of this Comcast Holdings discussion, Comcast Cable
and NBCUniversal are included within the non-guarantor subsidiary group).
Comcast's obligations as guarantor will remain in effect until all amounts
payable with respect to the guaranteed debt have been paid in full. However, the
guarantee will terminate upon a disposition of Comcast Holdings or all or
substantially all of its assets. Comcast Holdings is a consolidated subsidiary
holding company that directly or indirectly holds 100% and approximately 37% of
our equity interests in Comcast Cable and NBCUniversal, respectively.
As of December 31, 2021 and 2020, Comcast and Comcast Holdings, the combined
issuer and guarantor of the guaranteed subordinated debt, have noncurrent senior
notes payable to non-guarantor subsidiaries of $96 billion and $94 billion,
respectively, and noncurrent notes receivable from non-guarantor subsidiaries of
$29 billion and $23 billion, respectively. This financial information is that of
Comcast and Comcast Holdings presented on a combined basis with intercompany
balances between Comcast and Comcast Holdings eliminated. The combined financial
information excludes financial information of non-guarantor subsidiaries of
Comcast and Comcast Holdings. The underlying net assets of the non-guarantor
subsidiaries of Comcast and Comcast Holdings are significantly in excess of the
obligations of Comcast and Comcast Holdings. Excluding investments in
non-guarantor subsidiaries, external debt and the noncurrent notes payable and
receivable with non-guarantor subsidiaries, Comcast and Comcast Holdings do not
have material assets, liabilities or results of operations.
Critical Accounting Judgments and Estimates


The preparation of our 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.
We believe our judgments and related estimates associated with the valuation and
impairment testing of goodwill and cable franchise rights and the accounting for
film and television costs are critical in the preparation of our consolidated
financial statements. Management has discussed the development and selection of
these critical accounting judgments and estimates with the Audit Committee of
our Board of Directors, and the Audit Committee has reviewed the related
disclosures below. See also Notes 4 and 10.
Valuation and Impairment Testing of Goodwill and Cable Franchise Rights
We assess the recoverability of our goodwill and indefinite-lived intangible
assets, including cable franchise rights, annually as of July 1, or more
frequently whenever events or substantive changes in circumstances indicate that
the assets might be impaired. The assessment of recoverability may first
consider qualitative factors to determine whether the existence of events or
circumstances leads to a determination that it is more likely than not that the
fair value of a reporting unit or an indefinite-lived intangible asset is less
than its carrying amount. A quantitative assessment is performed if the
qualitative assessment results in a more-likely-than-not determination or if a
qualitative assessment is not performed.
Goodwill
Goodwill results from business combinations and represents the excess amount of
the consideration paid over the identifiable assets and liabilities recorded in
the acquisition. We test goodwill for impairment at the reporting unit level and
have concluded that our reporting units are generally the same as our reportable
segments. We evaluate the determination of our reporting units periodically or
whenever events or substantive changes in circumstances occur. When performing a
quantitative assessment, we estimate the fair values of our reporting units
primarily based on a discounted cash flow analysis that involves significant
judgment, including market participant estimates of future cash flows expected
to be generated by the business and the selection of discount rates. When
analyzing the fair values indicated under discounted cash flow models, we also
consider multiples of Adjusted EBITDA generated by the underlying assets,
current market transactions and profitability information.
We performed qualitative assessments in 2021 for goodwill in our Cable
Communications and NBCUniversal segments. The qualitative assessments considered
that the estimated fair values of these reporting units substantially exceeded
their carrying values at the time of our previous quantitative assessments in
2018; changes in projected future cash flows; recent market transactions and
overall macroeconomic conditions, including the effects of COVID-19; discount
rates; and changes in our market capitalization. Based on these assessments, we
concluded that it was more likely than not that the estimated fair values of our
reporting units were higher than their carrying values and that the performance
of a quantitative impairment test was not
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required. We performed a quantitative assessment in 2021 for goodwill in our Sky
segment and the estimated fair value of the reporting unit was higher than the
carrying value. Assets and liabilities resulting from a business combination are
initially recorded at fair value and the risk of goodwill impairment is reduced
as the value of the businesses in a reporting unit increases and as the carrying
value of the reporting unit decreases due to the amortization of the historical
cost of acquired long-lived assets over time. Given that the goodwill in our Sky
segment resulted from our acquisition of Sky in the fourth quarter of 2018, the
fair value is in close proximity to the carrying value of the Sky reporting
unit.
Changes in market conditions, laws and regulations, and key assumptions made in
future quantitative assessments, including expected cash flows, competitive
factors and discount rates, could negatively impact the results of future
impairment testing and could result in the recognition of an impairment charge.
Cable Franchise Rights
Our cable franchise rights assets result from agreements we have with state and
local governments that allow us to construct and operate a cable business within
a specified geographic area. The value of a franchise is derived from the
economic benefits we receive from the right to solicit new customers and to
market additional services in a particular service area. The amounts we record
for cable franchise rights are primarily a result of cable system acquisitions.
Typically when we acquire a cable system, the most significant asset we record
is the value of the cable franchise rights. Often these cable system
acquisitions include multiple franchise areas. We currently serve approximately
6,500 franchise areas in the United States.
We have concluded that our cable franchise rights have an indefinite useful life
since there are no legal, regulatory, contractual, competitive, economic or
other factors that limit the period over which these rights will contribute to
our cash flows. Accordingly, we do not amortize our cable franchise rights.
For purposes of impairment testing, we have grouped the recorded values of our
various cable franchise rights into our three Cable Communications divisions or
units of account. We evaluate the unit of account periodically to ensure our
impairment testing is performed at an appropriate level.
When performing a quantitative assessment, we estimate the fair values of our
cable franchise rights primarily based on a discounted cash flow analysis that
involves significant judgment, including the estimate of future cash flows and
the selection of discount rates. When analyzing the fair values indicated under
the discounted cash flow models, we also consider multiples of Adjusted EBITDA
generated by the underlying assets, current market transactions and
profitability information.
In 2021, we performed a qualitative assessment of our cable franchise rights. At
the time of our previous quantitative assessment in 2018, the estimated fair
values of our franchise rights substantially exceeded their carrying values. We
also considered various factors that would affect the estimated fair values of
our cable franchise rights in our qualitative assessment, including changes in
our projected future cash flows associated with our Cable Communications
segment; recent market transactions and overall macroeconomic conditions,
including the effects of COVID-19; discount rates; and changes in our market
capitalization. Based on this assessment, we concluded that it was more likely
than not that the estimated fair values of our cable franchise rights were
higher than the carrying values and that the performance of a quantitative
impairment test was not required.
Changes in market conditions, laws and regulations and key assumptions made in
future quantitative assessments, including expected cash flows, competitive
factors and discount rates, could negatively impact the results of future
impairment testing and could result in the recognition of an impairment charge.
Film and Television Content
We capitalize costs for owned film and television content, including direct
costs, production overhead, print costs, development costs and interest, as well
as acquired libraries. We have determined that the predominant monetization
strategy for the substantial majority of our content is on an individual basis.
Amortization for owned content predominantly monetized on an individual basis
and accrued costs associated with participations and residuals payments are
recorded using the individual film forecast computation method, which recognizes
the costs in the same ratio as the associated ultimate revenue.
Our estimates of ultimate revenue for films generally include revenue from all
sources that are expected to be earned within 10 years from the date of a film's
initial release. These estimates are based on the distribution strategy and
historical performance of similar content, as well as factors unique to the
content itself. The most sensitive factor affecting our estimate of ultimate
revenue for a film intended for theatrical release is the film's theatrical
performance, as subsequent revenue from the licensing and sale of a film has
historically exhibited a high correlation to its theatrical performance. Upon a
film's release, our estimates of revenue from succeeding markets, including from
content licensing across multiple platforms and home entertainment sales, are
revised based on historical relationships and an analysis of current market
trends.
With respect to television series or other owned television programming, the
most sensitive factor affecting our estimate of

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ultimate revenue is whether the series can be successfully licensed beyond its
initial license window. Initial estimates of ultimate revenue are limited to the
amount of revenue attributed to the initial license window. Once it is
determined that a television series or other owned television programming can be
licensed beyond the initial license window, revenue estimates for these
additional windows or platforms, such as U.S. and international syndication,
home entertainment, and other distribution platforms, are included in ultimate
revenue. Revenue estimates for produced episodes include revenue expected to be
earned within 10 years of delivery of the initial episode or, if still in
production, 5 years from the delivery of the most recent episode, if later.
We capitalize the costs of licensed content when the license period begins, the
content is made available for use and the costs of the licenses are known.
Licensed content is amortized as the associated programs are broadcast. We
recognize the costs of multiyear, live-event sports rights as the rights are
utilized over the contract term based on estimated relative value. Estimated
relative value is generally based on terms of the contract and the nature of and
potential revenue generation of the deliverables within the contract.
Capitalized film and television costs are subject to impairment testing when
certain triggering events are identified. The substantial majority of our owned
content is evaluated for impairment on an individual title basis. Licensed
content that is not part of a film group is tested for impairment primarily on a
channel, network or platform basis, with the exception of our broadcast networks
and owned local broadcast television stations, which are tested on a daypart
basis. Sports rights are accounted for as executory contracts and are not
subject to impairment. When performing an impairment assessment, we estimate
fair value primarily based on a discounted cash flow analysis that involves
significant judgment, including market participant estimates of future cash
flows, which are supported by internal forecasts. Adjustments to capitalized
film and television costs were not material in any of the periods presented.
Item 7A: Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk Management


We maintain a mix of fixed-rate and variable-rate debt and we are exposed to the
market risk of adverse changes in interest rates. In order to manage the cost
and volatility relating to the interest cost of our outstanding debt, we enter
into various interest rate risk management derivative transactions in accordance
with our policy.
We monitor our exposure to the risk of adverse changes in interest rates through
the use of techniques that include market valuation and sensitivity analyses. We
do not engage in any speculative or leveraged derivative transactions.
Our interest rate derivative financial instruments, which primarily include
cross-currency swaps and interest rate swaps, represent an integral part of our
interest rate risk management program.
The effect of our interest rate derivative financial instruments to our
consolidated interest expense was a decrease of $2 million in 2021, a decrease
of $9 million in 2020, and a decrease of $49 million in 2019. Interest rate
derivative financial instruments may have a significant effect on consolidated
interest expense in the future.
The table below summarizes by contractual year of maturity the principal amount
of our debt, notional amount of our interest rate instruments, effective rates,
and fair values subject to interest rate risk maintained by us as of
December 31, 2021. We estimate interest rates on variable rate debt and swaps
using the relevant average implied forward rates through the year of maturity
based on the yield curve in effect on December 31, 2021, plus the applicable
borrowing margin.
                                                                                                                                        Estimated
                                                                                                                                 Fair Value as of
(in millions)                                 2022        2023        2024        2025        2026   Thereafter       Total     December 31, 2021
Debt
Fixed-rate debt                        $  2,135    $  1,056    $  3,824   

$6,136 $5,232 $78,771 $97,155 $105,613 Average interest rate(a)

                    6.3  %      2.0  %      3.0  %      3.4  %      2.4  %       3.5  %      3.5  %
Variable-rate debt                     $      -    $      -    $    500    $      -    $      -    $   3,148    $  3,648    $            3,654
Average interest rate                         -  %        -  %      1.7  %        -  %        -  %       4.4  %      4.0  %
Fixed-to-Variable Swaps
Notional amount(b)                     $      -    $      -    $      -    $      -    $  1,250    $   1,250    $  2,500    $              (24)
Average pay rate                              -  %        -  %        -  %        -  %      3.5  %       4.1  %      3.8  %
Average receive rate                          -  %        -  %        -  %  

– % 3.3% 4.0% 3.7%

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(a)Includes the effects of our fixed-to-fixed cross-currency swaps, which are
discussed further below under the heading "Foreign Exchange Risk Management."
(b)Notional amounts are used to calculate the interest to be paid or received
and do not represent our exposure to credit loss. The estimated fair value
approximates the amount of payments to be made or proceeds to be received to
settle the outstanding contracts, excluding accrued interest.
Additionally, we have a $5.2 billion variable rate term loan presented
separately as a collateralized obligation that will mature in March 2024. We
entered into a series of variable-to-fixed interest rate swaps on $5.2 billion
of this term loan with an average pay rate of 1.1% and an average receive rate
of 0.9% estimated using December 31, 2021 implied forward rates through the year
of maturity. As of December 31, 2021 and 2020, the estimated fair value of the
term loan was $5.2 billion for each period, and the estimated fair value of the
related interest rate swaps was a net liability of $29 million and a net
liability of $155 million, respectively.
See Notes 1, 6 and 8 for additional information.
Foreign Exchange Risk Management


We have significant operations in a number of countries outside the United
States through Sky and NBCUniversal, and certain of our operations are conducted
in foreign currencies. The value of these currencies fluctuates relative to the
U.S. dollar. These changes could adversely affect the U.S. dollar equivalent
value of our non-U.S. dollar operations, which could negatively affect our
business, financial condition and results of operations in a given period or in
specific territories.
As part of our overall strategy to manage the level of exposure to the risk of
foreign exchange rate fluctuations, we enter into derivative financial
instruments related to a significant portion of our foreign currency exposure
for transactions denominated in currencies other than the functional currency of
the transacting entity. We enter into foreign currency forward contracts that
change in value as currency exchange rates fluctuate to protect the functional
currency equivalent value of non-functional currency denominated assets,
liabilities, commitments, and forecasted non-functional currency revenue and
expenses. In accordance with our policy, we hedge forecasted foreign currency
transactions for periods generally not to exceed 30 months. As of December 31,
2021 and 2020, we had foreign exchange contracts on transactions other than debt
with a total notional value of $8.0 billion and $8.1 billion, respectively. As
of December 31, 2021 and 2020, the aggregate estimated fair value of these
foreign exchange contracts was not material.
We use cross-currency swaps as cash flow hedges for certain foreign currency
denominated debt obligations with obligations denominated in a currency other
than the functional currency of the issuer. Cross-currency swaps effectively
convert foreign currency denominated debt to debt denominated in the functional
currency, which hedge currency exchange risks associated with foreign currency
denominated cash flows such as interest and principal debt repayments. As of
December 31, 2021 and 2020, we had cross-currency swaps designated as cash flow
hedges on $1.6 billion and $1.7 billion of our foreign currency denominated
debt, respectively. As of December 31, 2021 and 2020, the aggregate estimated
fair value of cross-currency swaps designated as cash flow hedges was a net
liability of $53 million and a net liability of $45 million, respectively.
We are also exposed to foreign exchange risk on the consolidation of our foreign
operations. We have foreign currency denominated debt and cross-currency swaps
designated as hedges of our net investments in certain of these subsidiaries.
Transaction gains and losses resulting from currency movements on debt and
changes in the fair value of cross-currency swaps designated as net investment
hedges are recorded within the currency translation adjustments component of
accumulated other comprehensive income (loss). As of December 31, 2021 and 2020,
the amount of our net investment in foreign subsidiaries hedged using foreign
currency denominated debt was $8.2 billion and $10.3 billion, respectively, and
the amount of our net investment in foreign subsidiaries hedged using
cross-currency swaps was $3.6 billion and $4.0 billion, respectively. As of
December 31, 2021 and 2020, the aggregate estimated fair value of these
cross-currency swaps was a net liability of $104 million and $376 million,
respectively. The amount of pre-tax gains (losses) related to net investment
hedges recognized in the cumulative translation adjustments component of other
comprehensive income (loss) were gains of $760 million in 2021, losses of
$686 million in 2020 and gains of $343 million in 2019.
We have analyzed our foreign currency exposure related to our foreign operations
as of December 31, 2021, including our hedging contracts, to identify assets and
liabilities denominated in a currency other than their functional currency. For
those assets and liabilities, we then evaluated the effect of a hypothetical 10%
shift in currency exchange rates, inclusive of the effects of derivatives. The
results of our analysis indicate that such a shift in exchange rates would not
have a material impact on our 2021 net income attributable to Comcast
Corporation.

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Counterparty Credit Risk Management


We manage the credit risks associated with our derivative financial instruments
through diversification and the evaluation and monitoring of the
creditworthiness of counterparties. Although we may be exposed to losses in the
event of nonperformance by counterparties, we do not expect such losses, if any,
to be significant. We have agreements with certain counterparties that include
collateral provisions. These provisions require a party with an aggregate
unrealized loss position in excess of certain thresholds to post cash collateral
for the amount in excess of the threshold. The threshold levels in our
collateral agreements are based on our and the counterparty's credit ratings. As
of December 31, 2021 and 2020, we were not required to post collateral under the
terms of these agreements, nor did we hold any collateral under the terms of
these agreements.
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