Edgar Filing: COMCAST CORP

Form 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2012

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

For the Transition Period from to

Commission File Number 001-32871

LOGO

COMCAST CORPORATION

(Exact name of registrant as specified in its charter)


PENNSYLVANIA		27-0000798
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

One Comcast Center, Philadelphia, PA		19103-2838
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (215) 286-1700

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

Yes x No ¨

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

Yes x No ¨

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

Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ¨

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

Yes ¨ No x

As of March 31, 2012, there were 2,109,694,188 shares of our Class A common stock, 577,031,322 shares of our Class A Special common stock and 9,444,375 shares of our Class B common stock outstanding.

TABLE OF CONTENTS


		Page Number
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements		1
	Condensed Consolidated Balance Sheet as of March 31, 2012 and December 31, 2011 (Unaudited)		1
	Condensed Consolidated Statement of Income for the Three Months Ended March 31, 2012 and 2011 (Unaudited)		2
	Condensed Consolidated Statement of Comprehensive Income for the Three Months Ended March 31, 2012 and 2011 (Unaudited)		3
	Condensed Consolidated Statement of Cash Flows for the Three Months Ended March 31, 2012 and 2011 (Unaudited)		4
	Condensed Consolidated Statement of Changes in Equity for the Three Months Ended March 31, 2012 and 2011 (Unaudited)		5
	Notes to Condensed Consolidated Financial Statements (Unaudited)		6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		35
Item 4.	Controls and Procedures		35
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		36
Item 1A.	Risk Factors		36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		36
Item 6.	Exhibits		37
SIGNATURES			38

This Quarterly Report on Form 10-Q is for the three months ended March 31, 2012. This Quarterly Report modifies and supersedes documents filed prior to this Quarterly Report. The Securities and Exchange Commission (“SEC”) allows us to “incorporate by reference” information that we file with it, which means that we can disclose important information to you by referring you directly to those documents. Information incorporated by reference is considered to be part of this Quarterly Report. In addition, information that we file with the SEC in the future will automatically update and supersede information contained in this Quarterly Report. Throughout this Quarterly Report, we refer to Comcast Corporation as “Comcast;” Comcast and its consolidated subsidiaries, including NBCUniversal, as “we,” “us” and “our;” and Comcast Holdings Corporation as “Comcast Holdings.”

You should carefully review the information contained in this Quarterly Report and particularly consider any risk factors set forth in this Quarterly Report and in other reports or documents that we file from time to time with the SEC. In this Quarterly Report, we state our beliefs of future events and of our future financial performance. In some cases, you can identify these so-called “forward-looking statements” by words such as “may,” “will,” “should,” “expects,” “believes,” “estimates,” “potential,” or “continue,” or the negative of those words, and other comparable words. You should be aware that those statements are only our predictions. In evaluating those statements, you should specifically consider various factors, including the risks outlined below and in other reports we file with the SEC. Actual events or our actual results may differ materially from any of our forward-looking statements. We undertake no obligation to update any forward-looking statements.

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

•

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

•

changes in consumer behavior driven by new technologies may adversely affect our competitive position, businesses and results of operations

•

programming expenses for our video services are increasing, which could adversely affect our future results of operations

•

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

•

weak economic conditions may have a negative impact on our businesses, results of operations and financial condition

•

a decline in advertising expenditures or changes in advertising markets could negatively impact our results of operations

•

NBCUniversal’s success depends on consumer acceptance of its content, which is difficult to predict, and our results of operations may be adversely affected if our content fails to achieve sufficient consumer acceptance or our costs to acquire content increase

•

the loss of our programming distribution agreements, or the renewal of these agreements on less favorable terms, could adversely affect our businesses and results of operations

•

our businesses depend on keeping pace with technological developments

•

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

•

sales of DVDs have been declining

•

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

•

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

•

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

•

we face risks arising from the outcome of various litigation matters

•

acquisitions and other strategic transactions present many risks, and we may not realize the financial and strategic goals that were contemplated at the time of any transaction

•

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

•

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

•

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

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheet

(Unaudited)


(in millions, except share data)	March 31, 2012			December 31, 2011
Assets
Current Assets:
Cash and cash equivalents	$	2,207		$	1,620
Receivables, net		4,379			4,351
Programming rights		1,011			987
Other current assets		1,758			1,615
Total current assets		9,355			8,573
Film and television costs		5,112			5,227
Investments		10,149			9,854
Property and equipment, net of accumulated depreciation of $37,275 and $36,528		26,962			27,559
Franchise rights		59,364			59,376
Goodwill		26,803			26,874
Other intangible assets, net of accumulated amortization of $6,978 and $6,665		18,001			18,165
Other noncurrent assets, net		2,203			2,190
Total assets	$	157,949		$	157,818

Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses related to trade creditors	$	5,763		$	5,705
Accrued participations and residuals		1,394			1,255
Accrued expenses and other current liabilities		5,770			4,914
Current portion of long-term debt		2,705			1,367
Total current liabilities		15,632			13,241
Long-term debt, less current portion		35,080			37,942
Deferred income taxes		29,812			29,932
Other noncurrent liabilities		13,446			13,034
Commitments and contingencies (Note 14)
Redeemable noncontrolling interests		16,158			16,014
Equity:
Preferred stock—authorized, 20,000,000 shares; issued, zero		—			—
Class A common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 2,475,154,938 and 2,460,937,253; outstanding, 2,109,694,188 and 2,095,476,503		25			25
Class A Special common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 647,966,086 and 671,947,577; outstanding, 577,031,322 and 601,012,813		6			7
Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375		—			—
Additional paid-in capital		40,893			40,940
Retained earnings		14,217			13,971
Treasury stock, 365,460,750 Class A common shares and 70,934,764 Class A Special common shares		(7,517	)		(7,517	)
Accumulated other comprehensive income (loss)		(148	)		(152	)
Total Comcast Corporation shareholders’ equity		47,476			47,274
Noncontrolling interests		345			381
Total equity		47,821			47,655
Total liabilities and equity	$	157,949		$	157,818

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidated Statement of Income

(Unaudited)


	Three Months Ended March 31
(in millions, except per share data)	2012			2011
Revenue	$	14,878		$	12,128
Costs and Expenses:
Operating costs and expenses		10,190			8,062
Depreciation		1,529			1,486
Amortization		401			356
		12,120			9,904
Operating income		2,758			2,224
Other Income (Expense):
Interest expense		(640	)		(605	)
Investment income (loss), net		92			89
Equity in net income (losses) of investees, net		3			(37	)
Other income (expense), net		(16	)		(36	)
		(561	)		(589	)
Income before income taxes		2,197			1,635
Income tax expense		(750	)		(596	)
Net income		1,447			1,039
Net (income) loss attributable to noncontrolling interests		(223	)		(96	)
Net income attributable to Comcast Corporation	$	1,224		$	943

Basic earnings per common share attributable to Comcast Corporation shareholders	$	0.45		$	0.34
Diluted earnings per common share attributable to Comcast Corporation shareholders	$	0.45		$	0.34
Dividends declared per common share attributable to Comcast Corporation shareholders	$	0.1625		$	0.1125

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)


	Three Months Ended March 31
(in millions)	2012			2011
Net income	$	1,447		$	1,039
Unrealized gains (losses) on marketable securities, net of deferred taxes of $— and $(3)		—			5
Deferred gains (losses) on cash flow hedges, net of deferred taxes of $(11) and $(6)		20			11
Amounts reclassified to net income:
Realized (gains) losses on marketable securities, net of deferred taxes of $— and $4		—			(7	)
Realized (gains) losses on cash flow hedges, net of deferred taxes of $9 and $7		(16	)		(12	)
Employee benefit obligations, net of deferred taxes of $— and $(2)		(2	)		3
Currency translation adjustments, net of deferred taxes of $— and $—		2			4
Comprehensive income		1,451			1,043
Net (income) loss attributable to noncontrolling interests		(223	)		(96	)
Other comprehensive (income) loss attributable to noncontrolling interests		—			(2	)
Comprehensive income attributable to Comcast Corporation	$	1,228		$	945

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidated Statement of Cash Flows

(Unaudited)


	Three Months Ended March 31
(in millions)	2012			2011
Net cash provided by (used in) operating activities	$	4,393		$	3,468
Investing Activities
Capital expenditures		(1,174	)		(1,106	)
Cash paid for intangible assets		(184	)		(123	)
Acquisitions, net of cash acquired		—			(5,658	)
Proceeds from sales of businesses and investments		35			18
Purchases of investments		(62	)		(16	)
Other		36			(2	)
Net cash provided by (used in) investing activities		(1,349	)		(6,887	)
Financing Activities
Proceeds from (repayments of) short-term borrowings, net		(407	)		1,677
Repurchases and repayments of debt		(1,125	)		(1,759	)
Repurchases and retirements of common stock		(750	)		(525	)
Dividends paid		(304	)		(261	)
Issuances of common stock		150			129
Distributions to noncontrolling interests		(58	)		(46	)
Other		37			42
Net cash provided by (used in) financing activities		(2,457	)		(743	)
Increase (decrease) in cash and cash equivalents		587			(4,162	)
Cash and cash equivalents, beginning of period		1,620			5,984
Cash and cash equivalents, end of period	$	2,207		$	1,822

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidated Statement of Changes in Equity

(Unaudited)


	Redeemable Non- controlling Interests			Common Stock							Additional Paid-In Capital			Retained Earnings			Treasury Stock at Cost			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interests			Total Equity
(in millions)	Redeemable Non- controlling Interests			A		A Special			B		Additional Paid-In Capital			Retained Earnings			Treasury Stock at Cost			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interests			Total Equity
Balance, January 1, 2011	$	143		$	24	$	8		$	—	$	39,780		$	12,158		$	(7,517	)	$	(99	)	$	80		$	44,434
Stock compensation plans												182			(22	)											160
Repurchase and retirement of common stock							(1	)				(261	)		(263	)											(525	)
Employee stock purchase plan												14															14
Dividends declared															(312	)											(312	)
Other comprehensive income (loss)		2																			2						2
NBCUniversal transaction		15,166										1,692												188			1,880
Contributions from (distributions to) noncontrolling interests, net		(126	)																					(31	)		(31	)
Net income (loss)		54													943									42			985
Balance, March 31, 2011	$	15,239		$	24	$	7		$	—	$	41,407		$	12,504		$	(7,517	)	$	(97	)	$	279		$	46,607
Balance, January 1, 2012	$	16,014		$	25	$	7		$	—	$	40,940		$	13,971		$	(7,517	)	$	(152	)	$	381		$	47,655
Stock compensation plans												224			(82	)											142
Repurchase and retirement of common stock							(1	)				(292	)		(457	)											(750	)
Employee stock purchase plan												19															19
Dividends declared															(439	)											(439	)
Other comprehensive income (loss)																					4						4
Contributions from (distributions to) noncontrolling interests, net		(8	)																					(39	)		(39	)
Purchase of subsidiary shares from noncontrolling interest		(44	)									2															2
Other																								(24	)		(24	)
Net income (loss)		196													1,224									27			1,251
Balance, March 31, 2012	$	16,158		$	25	$	6		$	—	$	40,893		$	14,217		$	(7,517	)	$	(148	)	$	345		$	47,821

See accompanying notes to condensed consolidated financial statements.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1: Condensed Consolidated Financial Statements

Basis of Presentation

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

The year-end condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”). For a more complete discussion of our accounting policies and certain other information, refer to our consolidated financial statements included in our 2011 Annual Report on Form 10-K.

On January 28, 2011, we closed the NBCUniversal transaction in which we acquired control of the businesses of NBC Universal, Inc. (“NBCUniversal”), and on July 1, 2011, we closed the Universal Orlando transaction in which we acquired the remaining 50% equity interest in Universal City Development Partners, Ltd. (“Universal Orlando”) that we did not already own. NBCUniversal’s and Universal Orlando’s results of operations have been consolidated with our results following their respective acquisition dates. For a more complete discussion of the NBCUniversal and Universal Orlando transactions, refer to our consolidated financial statements included in our 2011 Annual Report on Form 10-K.

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

Note 2: Earnings Per Share

Basic earnings per common share attributable to Comcast Corporation shareholders (“basic EPS”) is computed by dividing net income attributable to Comcast Corporation by the weighted-average number of common shares outstanding during the period.

Our potentially dilutive securities include potential common shares issuable under our outstanding stock options and our restricted share units (“RSUs”). Diluted earnings per common share attributable to Comcast Corporation shareholders (“diluted EPS”) considers the impact of potentially dilutive securities using the treasury stock method. Diluted EPS excludes the impact of potential common shares issuable under our outstanding stock options in periods in which the option exercise price is greater than the average market price of our Class A common stock or our Class A Special common stock, as applicable.

Diluted EPS for the three months ended March 31, 2012 and 2011 excludes approximately 26 million and 32 million, respectively, of potential common shares related to our share-based compensation plans, because the inclusion of the potential common shares would have had an antidilutive effect.

Computation of Diluted EPS


	Three Months Ended March 31
	2012						2011
(in millions, except per share data)	Net Income Attributable to Comcast Corporation		Shares		Per Share Amount		Net Income Attributable to Comcast Corporation		Shares		Per Share Amount
Basic EPS attributable to Comcast Corporation shareholders	$	1,224		2,708	$	0.45	$	943		2,772	$	0.34
Effect of dilutive securities:
Assumed exercise or issuance of shares relating to stock plans				36						33
Diluted EPS attributable to Comcast Corporation shareholders	$	1,224		2,744	$	0.45	$	943		2,805	$	0.34

Note 3: Film and Television Costs


(in millions)	March 31, 2012		December 31, 2011
Film Costs:
Released, less amortization	$	1,440	$	1,428
Completed, not released		328		148
In-production and in-development		1,079		1,374
		2,847		2,950
Television Costs:
Released, less amortization		1,019		1,002
In-production and in-development		143		201
		1,162		1,203
Programming rights, less amortization		2,114		2,061
		6,123		6,214
Less: Current portion of programming rights		1,011		987
Film and television costs	$	5,112	$	5,227

Note 4: Investments


(in millions)	March 31, 2012		December 31, 2011
Fair value method	$	3,544	$	3,028
Equity Method:
A&E Television Networks		2,019		2,021
SpectrumCo		1,414		1,417
The Weather Channel		464		463
MSNBC.com		175		174
Clearwire LLC		25		69
Other		736		736
		4,833		4,880
Cost Method:
AirTouch		1,527		1,523
Other		473		477
		2,000		2,000
Total investments		10,377		9,908
Less: Current investments^(a)		228		54
Noncurrent investments	$	10,149	$	9,854

(a)	Current investments are included in other current assets in our condensed consolidated balance sheet.

Fair Value Method

As of March 31, 2012, we held as collateral $3.5 billion of fair value method equity securities related to our obligations under prepaid forward sale agreements. As of March 31, 2012, our prepaid forward sale obligations were recorded at $2.9 billion and had an estimated fair value of approximately $3.0 billion. The estimated fair values are based on Level 2 inputs using pricing models whose inputs are derived primarily from or corroborated by observable market data through correlation or other means for substantially the full term of the financial instrument.

Equity Method

On March 26, 2012, NBCUniversal exercised an option that requires A&E Television Networks LLC (“A&E Television Networks”) to redeem a substantial portion of NBCUniversal’s equity interest in A&E Television Networks. We expect the transaction to close during the second half of 2012, upon the agreement by all parties as to the value of NBCUniversal’s equity interest. Under the terms of our existing shareholder agreement, NBCUniversal is required to provide a last dollar guarantee of indebtedness that A&E Television Networks may incur to finance the purchase of NBCUniversal’s equity interest.

Cost Method

We hold two series of preferred stock of AirTouch Communications, Inc. (“AirTouch”), a subsidiary of Vodafone, which are redeemable in April 2020. As of March 31, 2012, the estimated fair value of the AirTouch preferred stock and the associated liability related to redeemable preferred shares issued by one of our consolidated subsidiaries was approximately $1.8 billion. The estimated fair values are primarily based on Level 2 inputs using pricing models whose inputs are derived from or corroborated by observable market data through correlation or other means for substantially the full term of the financial instrument.

Components of Investment Income (Loss), Net


	Three Months Ended March 31
(in millions)	2012			2011
Gains on sales and exchanges of investments, net	$	7		$	14
Investment impairment losses		(12	)		—
Unrealized gains (losses) on securities underlying prepaid forward sale agreements		516			309
Mark to market adjustments on derivative component of prepaid forward sale agreements and indexed debt instruments		(470	)		(261	)
Interest and dividend income		29			26
Other, net		22			1
Investment income (loss), net	$	92		$	89

Note 5: Goodwill


				NBCUniversal
(in millions)	Cable Communications			Cable Networks		Broadcast Television			Filmed Entertainment		Theme Parks			Corporate and Other		Total
Balance, December 31, 2011	$	12,208		$	12,744	$	772		$	1	$	1,140		$	9	$	26,874
Dispositions		(1	)		—		—			—		—			—		(1	)
Adjustments		—			—		(9	)		—		(61	)		—		(70	)
Balance, March 31, 2012	$	12,207		$	12,744	$	763		$	1	$	1,079		$	9	$	26,803

There have been no significant changes during the three months ended March 31, 2012 to our preliminary allocation of purchase price for the Universal Orlando transaction from what was disclosed in our 2011 Annual Report on Form 10-K. The estimated fair values are not yet final and are subject to change. We will finalize the amounts recognized as we obtain the information necessary to complete the analysis, but no later than June 30, 2012.

Note 6: Long-Term Debt

As of March 31, 2012, our debt had an estimated fair value of $43.5 billion. The estimated fair value of our publicly traded debt is based on quoted market values for the debt. To estimate the fair value of debt for which there are no quoted market prices, we use interest rates available to us for debt with similar terms and remaining maturities.

Repayments

In February 2012, we redeemed $563 million principal amount of the $1.1 billion aggregate principal amount outstanding of our 7% senior notes due 2055 and repaid at maturity $553 million principal amount of our 9.8% senior notes due 2012.

In April 2012, we redeemed the remaining $563 million principal amount of our 7% senior notes due 2055. The carrying amount of these senior notes was recorded in current portion of long-term debt in our condensed consolidated balance sheet as of March 31, 2012.

Commercial Paper Program

During the three months ended March 31, 2012, net repayments of commercial paper by NBCUniversal were $400 million.

Note 7: Derivative Financial Instruments

We use derivative financial instruments to manage our exposure to the risks associated with fluctuations in interest rates, foreign exchange rates and equity prices.

We manage our exposure to fluctuations in interest rates by using derivative financial instruments such as interest rate exchange agreements (“swaps”), interest rate lock agreements (“rate locks”) and interest rate collars

(“collars”). We sometimes enter into rate locks or collars to hedge the risk that the cash flows related to the interest payments on an anticipated issuance or assumption of fixed-rate debt may be adversely affected by interest rate fluctuations.

We manage our exposure to fluctuations in foreign exchange rates by using foreign exchange contracts such as forward contracts and currency options, as well as cross-currency swaps for our foreign currency denominated borrowings.

We manage our exposure to and benefits from price fluctuations in the common stock of some of our investments by using equity derivative financial instruments embedded in other contracts, such as prepaid forward sale agreements, whose values, in part, are derived from the market value of certain publicly traded common stock.

We manage the credit risks associated with our derivative financial instruments through diversification and the evaluation and monitoring of the creditworthiness of the counterparties. Although we may be exposed to losses in the event of nonperformance by the 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 counterparties’ credit ratings. As of March 31, 2012, neither we nor any of the counterparties were required to post collateral under the terms of the agreements.

During the three months ended March 31, 2012, there were no significant changes in the composition of any of our derivative financial instruments or their classification in our condensed consolidated balance sheet. In addition, the impact of our derivative financial instruments to our condensed consolidated financial statements was not material for the three months ended March 31, 2012 and 2011.

See Note 8 for additional information on the fair value of our derivative financial instruments as of March 31, 2012 and December 31, 2011.

Note 8: Fair Value Measurements

The accounting guidance related to financial assets and financial liabilities (“financial instruments”) establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach and cost approach). Level 1 consists of financial instruments whose values are based on quoted market prices for identical financial instruments in an active market. Level 2 consists of financial instruments that are valued using models or other valuation methodologies. These models use inputs that are observable either directly or indirectly. Level 3 consists of financial instruments whose values are determined using pricing models that use significant inputs that are primarily unobservable, discounted cash flow methodologies or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Our financial instruments that are accounted for at fair value on a recurring basis are presented in the table below.

Recurring Fair Value Measures


	Fair Value as of
	March 31, 2012								December 31, 2011
(in millions)	Level 1		Level 2		Level 3		Total		Total
Assets
Trading securities	$	3,401	$	—	$	—	$	3,401	$	2,895
Interest rate swap agreements		—		234		—		234		246
Available-for-sale securities		100		20		21		141		131
Foreign exchange contracts		—		13		—		13		10
Equity warrants		—		—		2		2		2
	$	3,501	$	267	$	23	$	3,791	$	3,284

Liabilities
Derivative component of prepaid forward sale agreements and indexed debt instruments	$	—	$	1,704	$	—	$	1,704	$	1,234
Contractual obligations		—		—		984		984		1,004
Contingent consideration		—		—		579		579		583
Cross-currency swap agreements		—		35		—		35		69
Foreign exchange contracts		—		13		—		13		8
	$	—	$	1,752	$	1,563	$	3,315	$	2,898

The determinations of the fair values of the contractual obligations and contingent consideration in the table above are primarily based on certain expected future discounted cash flows, which involves the use of significant unobservable inputs. The most significant unobservable input we use is our estimate of the future revenue we expect to generate from certain NBCUniversal entities related to our contractual obligations and future payments to GE that are related to contingent consideration. The discount rates used in the measurements of fair value ranged between 5.6% and 13.0% and are based on the underlying risk associated with our estimate of future revenue, as well as the terms of the respective contracts, and the uncertainty in the timing of our payments to GE. Fair value adjustments to these liabilities are recorded in other income (expense), net in our condensed consolidated statement of income.

Changes in Contractual Obligations and Contingent Consideration


(in millions)	Contractual Obligations			Contingent Consideration
Balance, December 31, 2011	$	1,004		$	583
Acquisition accounting adjustments		(20	)		—
Fair value adjustments		19			8
Payments		(19	)		(12	)
Balance, March 31, 2012	$	984		$	579

Note 9: Noncontrolling Interests

Certain of the subsidiaries that we consolidate are not wholly owned. Some of the agreements with the minority partners of these subsidiaries contain redemption features whereby interests held by the minority partners, including GE’s 49% interest in NBCUniversal, are redeemable either (i) at the option of the holder or (ii) upon the occurrence of an event that is not solely within our control. If interests were to be redeemed under these agreements, we would generally be required to purchase the interest at fair value on the date of redemption. These interests are presented on the balance sheet outside of equity under the caption “Redeemable noncontrolling interests.” Noncontrolling interests that do not contain such redemption features are presented in equity.

The table below presents the changes in equity resulting from net income attributable to Comcast Corporation and transfers to or from noncontrolling interests.


	Three Months Ended March 31
(in millions)	2012		2011
Net income attributable to Comcast Corporation	$	1,224	$	943
Transfers from (to) noncontrolling interests:
Increase in Comcast Corporation additional paid-in capital resulting from the issuance of noncontrolling equity interest		—		1,692
Increase in Comcast Corporation additional paid-in capital resulting from the purchase of noncontrolling interest		2		—
Changes in equity resulting from net income attributable to Comcast Corporation and transfers from (to) noncontrolling interests	$	1,226	$	2,635

Note 10: Pension Plans and Postretirement Benefits

The table below presents the components of net periodic benefit expense related to our active pension plans and postretirement benefit plans.


	Three Months Ended March 31, 2012					Three Months Ended March 31, 2011
(in millions)	Pension Benefits			Postretirement Benefits		Pension Benefits		Postretirement Benefits
Service cost	$	32		$	8	$	18	$	7
Interest cost		4			7		2		7
Prior service cost		—			—		—		(13	)
Other		(1	)		—		—		—
Total benefits expense	$	35		$	15	$	20	$	1

In April 2012, NBCUniversal provided initial funding to its qualified defined benefit plan of $76 million. The expected return on the plan assets of this plan is 5%.

Note 11: Share-Based Compensation

Our approach to long-term incentive compensation includes awarding stock options and RSUs to certain employees and directors. We grant these awards under various plans. Additionally, through our employee stock purchase plans, employees are able to purchase shares of Comcast Class A common stock at a discount through payroll deductions.

In March 2012, we granted 21.8 million stock options and 5.7 million RSUs related to our annual management grant program. The weighted-average fair values associated with these grants were $7.38 per stock option and $27.43 per RSU.

Recognized Share-Based Compensation Expense


	Three Months Ended March 31
(in millions)	2012		2011
Stock options	$	29	$	22
Restricted share units		35		40
Employee stock purchase plans		5		3
Total	$	69	$	65

As of March 31, 2012, we had unrecognized pretax compensation expense related to nonvested stock options and nonvested RSUs of $417 million and $439 million, respectively.

For the three months ended March 31, 2012 and 2011, the employee cost associated with participation in the employee stock purchase plans was satisfied with payroll deductions of $18 million and $15 million, respectively.

Note 12: Supplemental Financial Information

Receivables


(in millions)	March 31, 2012		December 31, 2011
Receivables, gross	$	4,880	$	4,978
Less: Allowance for returns and customer incentives		333		425
Less: Allowance for doubtful accounts		168		202
Receivables, net	$	4,379	$	4,351

Accumulated Other Comprehensive Income (Loss)


(in millions)	March 31, 2012			March 31, 2011
Unrealized gains (losses) on marketable securities	$	22		$	24
Deferred gains (losses) on cash flow hedges		(107	)		(106	)
Unrecognized gains (losses) on employee benefit obligations		(58	)		(16	)
Cumulative translation adjustments		(5	)		1
Accumulated other comprehensive income (loss), net of deferred taxes	$	(148	)	$	(97	)

Operating Costs and Expenses


	Three Months Ended March 31
(in millions)	2012		2011
Programming and production	$	4,737	$	3,271
Cable Communications technical labor		588		593
Cable Communications customer service		494		469
Advertising, marketing and promotion		1,203		980
Other		3,168		2,749
Operating costs and expenses (excluding depreciation and amortization)	$	10,190	$	8,062

Net Cash Provided by Operating Activities


	Three Months Ended March 31
(in millions)	2012			2011
Net income	$	1,447		$	1,039
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,930			1,842
Amortization of film and television costs		2,153			1,184
Share-based compensation		89			84
Noncash interest expense (income), net		48			40
Equity in net (income) losses of investees, net		(3	)		37
Cash received from investees		73			98
Net (gain) loss on investment activity and other		(74	)		(85	)
Deferred income taxes		(59	)		130
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Change in receivables, net		(30	)		725
Change in film and television costs		(2,061	)		(1,466	)
Change in accounts payable and accrued expenses related to trade creditors		169			(131	)
Change in other operating assets and liabilities		711			(29	)
Net cash provided by operating activities	$	4,393		$	3,468

Cash Payments for Interest and Income Taxes


	Three Months Ended March 31
(in millions)	2012		2011
Interest	$	614	$	657
Income taxes	$	118	$	74

Noncash Investing and Financing Activities

During the three months ended March 31, 2012, we:

•

acquired $476 million of property and equipment and intangible assets that were accrued but unpaid, which is a noncash investing activity

•

recorded a liability of $439 million for a quarterly cash dividend of $0.1625 per common share paid in April 2012, which is a noncash financing activity

Unaudited Actual and Pro Forma Information

The following unaudited pro forma information has been presented as if both the NBCUniversal transaction and the Universal Orlando transaction occurred on January 1, 2010. This information is based on historical results of operations, adjusted for the allocation of purchase price and other acquisition accounting adjustments, and is not necessarily indicative of what our results would have been had we operated the businesses since January 1, 2010. No pro forma adjustments have been made for our incremental transaction-related expenses.


	Three Months Ended March 31
	Actual		Pro Forma
(in millions except per share amounts)	2012		2011
Revenue	$	14,878	$	13,580
Net income	$	1,447	$	1,000
Net income attributable to Comcast Corporation	$	1,224	$	916
Basic earnings per common share attributable to Comcast Corporation shareholders	$	0.45	$	0.33
Diluted earnings per common share attributable to Comcast Corporation shareholders	$	0.45	$	0.33

Note 13: Receivables Monetization

NBCUniversal monetizes certain of its accounts receivable under programs with a syndicate of banks. We account for receivables monetized through these programs as sales in accordance with the appropriate accounting guidance. We receive deferred consideration from the assets sold in the form of a receivable, which is funded by residual cash flows after the senior interests have been fully paid. The deferred consideration is recorded in receivables, net at its initial fair value, which reflects the net cash flows we expect to receive related to these interests. The accounts receivable we sold that underlie the deferred consideration are generally short-term in nature and, therefore, the fair value of the deferred consideration approximated its carrying value as of March 31, 2012.

NBCUniversal is responsible for servicing the receivables and remitting collections to the purchasers under the monetization programs. NBCUniversal performs this service for a fee that is equal to the prevailing market rate for such services. As a result, no servicing asset or liability has been recorded in our condensed consolidated balance sheet as of March 31, 2012. The servicing fees are a component of net loss (gain) on sale, which is presented in the table below.

Effect on Income from Receivables Monetization and Cash Flows on Transfers


	Three Months Ended March 31
(in millions)	2012			2011
Interest expense	$	3		$	—
Net (loss) gain on sale^(a)	$	(1	)	$	(8	)
Net cash proceeds (payments) on transfers^(b)	$	(90	)	$	(424	)

(a)	Net (loss) gain on sale is included in other income (expense), net in our condensed consolidated statement of income.

(b)	Net cash proceeds (payments) on transfers are included within net cash provided by operating activities in our condensed consolidated statement of cash flows.

Receivables Monetized and Deferred Consideration


(in millions)	March 31, 2012		December 31, 2011
Monetized receivables sold	$	808	$	961
Deferred consideration	$	278	$	268

In addition to the amounts presented above, we had $855 million and $781 million payable to our monetization programs as of March 31, 2012 and December 31, 2011, respectively. These amounts represent cash receipts that have not yet been remitted to the monetization programs as of the balance sheet date and are recorded to accounts payable and accrued expenses related to trade creditors.

Note 14: Commitments and Contingencies

Contingencies

Antitrust Cases

We are defendants in two purported class actions originally filed in December 2003 in the United States District Courts for the District of Massachusetts and the Eastern District of Pennsylvania. The potential class in the Massachusetts case, which has been transferred to the Eastern District of Pennsylvania, is our customer base in the “Boston Cluster” area, and the potential class in the Pennsylvania case is our customer base in the “Philadelphia and Chicago Clusters,” as those terms are defined in the complaints. In each case, the plaintiffs allege that certain customer exchange transactions with other cable providers resulted in unlawful horizontal market restraints in those areas and seek damages under antitrust statutes, including treble damages.

Classes of Chicago Cluster and Philadelphia Cluster customers were certified in October 2007 and January 2010, respectively. We appealed the class certification in the Philadelphia Cluster case to the Third Circuit Court of Appeals, which affirmed the class certification in August 2011 and denied our petition for a rehearing en banc in September 2011. While we have given notice to the class, we filed a writ of certiorari with the U.S. Supreme Court asking that it review the Third Circuit Court of Appeals’ ruling. In March 2010, we moved for summary judgment dismissing all of the plaintiffs’ claims in the Philadelphia Cluster. In April 2012, the District Court issued a decision dismissing some of the plaintiffs’ claims, but allowing two claims to proceed to trial. A trial for the Philadelphia Cluster case has been set for September 2012. The plaintiffs’ claims concerning the other two clusters are stayed pending determination of the Philadelphia Cluster claims.

We also are among the defendants in a purported class action filed in the United States District Court for the Central District of California in September 2007. The potential class is comprised of all persons residing in the United States who have subscribed to an expanded basic level of video service provided by one of the defendants. The plaintiffs allege that the defendants who produce video programming have entered into agreements with the defendants who distribute video programming via cable and satellite (including us), which preclude the distributor defendants from reselling channels to customers on an “unbundled” basis in violation of federal antitrust laws. The plaintiffs seek treble damages and injunctive relief requiring each distributor defendant to resell certain channels to its customers on an “unbundled” basis. In October 2009, the Central District of California issued an order dismissing the plaintiffs’ complaint with prejudice. In March 2012, a panel of the Ninth Circuit Court of Appeals affirmed the District Court’s order, and in April 2012, the plaintiffs filed a petition for a rehearing.

In addition, we are the defendant in 22 purported class actions filed in federal district courts throughout the country. All of these actions have been consolidated by the Judicial Panel on Multidistrict Litigation in the United States District Court for the Eastern District of Pennsylvania for pre-trial proceedings. In a consolidated complaint filed in November 2009 on behalf of all plaintiffs in the multidistrict litigation, the plaintiffs allege that we improperly “tie” the rental of set-top boxes to the provision of premium cable services in violation of Section 1 of the Sherman Antitrust Act, various state antitrust laws and unfair/deceptive trade practices acts in California, Illinois and Alabama. The plaintiffs also allege a claim for unjust enrichment and seek relief on behalf of a nationwide class of our premium cable customers and on behalf of subclasses consisting of premium cable customers from California, Alabama, Illinois, Pennsylvania and Washington. In January 2010, we moved to compel arbitration of the plaintiffs’ claims for unjust enrichment and violations of the unfair/deceptive trade practices acts of Illinois and Alabama. In September 2010, the plaintiffs filed an amended complaint alleging violations of additional state antitrust laws and unfair/deceptive trade practices acts on behalf of new subclasses in Connecticut, Florida, Minnesota, Missouri, New Jersey, New Mexico and West Virginia. In the amended complaint, plaintiffs omitted their unjust enrichment claim, as well as their state law claims on behalf of the Alabama, Illinois and Pennsylvania subclasses. In June 2011, the plaintiffs filed another amended complaint alleging only violations of Section 1 of the Sherman Antitrust Act, antitrust law in Washington and unfair/deceptive trade practices acts in California and Washington. The plaintiffs seek relief on behalf of a nationwide class of our premium cable customers and on behalf of subclasses consisting of premium cable customers from California and Washington. In July 2011, we moved to compel arbitration of certain claims and to stay the remaining claims pending arbitration.

The West Virginia Attorney General also filed a complaint in West Virginia state court in July 2009 alleging that we improperly “tie” the rental of set-top boxes to the provision of digital cable services in violation of the West Virginia Antitrust Act and the West Virginia Consumer Credit and Protection Act. The Attorney General also alleges a claim for unjust enrichment/restitution. We removed the case to the United States District Court for West Virginia, and it was subsequently transferred to the United States District Court for the Eastern District of Pennsylvania and consolidated with the multidistrict litigation described above. In March 2010, the Eastern District of Pennsylvania denied the Attorney General’s motion to remand the case back to West Virginia state court. In June 2010, the Attorney General moved to sever and remand the portion of the claims seeking civil penalties and injunctive relief back to West Virginia state court. We filed a brief in opposition to the motion in July 2010.

We believe the claims in each of the pending actions described above in this item are without merit and intend to defend the actions vigorously. We cannot predict the outcome of any of the actions described above, including a range of possible loss, or how the final resolution of any such actions would impact our results of operations or cash flows for any one period or our consolidated financial position. In addition, as any action nears a trial, there is an increased possibility that the action may be settled by the parties. Nevertheless, the final disposition of any of the above actions is not expected to have a material adverse effect on our consolidated financial position, but could possibly be material to our consolidated results of operations or cash flows for any one period.

Other

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

Note 15: Financial Data by Business Segment

We present our operations in five reportable business segments:

•

Cable Communications: Provides video, high-speed Internet and voice services (“cable services”) to residential and business customers in 39 states and the District of Columbia.

•

Cable Networks: Consists primarily of our national cable television networks, our regional sports and news networks, our international cable networks, our cable television production studio, and our related digital media properties.

•

Broadcast Television: Consists primarily of our NBC and Telemundo broadcast networks, our NBC and Telemundo owned local television stations, our broadcast television production operations, and our related digital media properties.

•

Filmed Entertainment: Consists of the operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment and stage plays worldwide.

•

Theme Parks: Consists primarily of our Universal theme parks in Orlando and Hollywood.

In evaluating the profitability of our operating segments, the components of net income (loss) below operating income (loss) before depreciation and amortization are not separately evaluated by our management. Our financial data by business segment is presented in the tables below.


	Three Months Ended March 31, 2012
(in millions)	Revenue^(f)			Operating Income (Loss) Before Depreciation and Amortization^(g)			Depreciation and Amortization			Operating Income (Loss)			Capital Expenditures
Cable Communications^(a)	$	9,599		$	3,955		$	1,602		$	2,353		$	1,056
NBCUniversal
Cable Networks		2,138			805			178			627			9
Broadcast Television		1,851			(10	)		21			(31	)		8
Filmed Entertainment		1,192			6			4			2			1
Theme Parks		412			157			62			95			47
Headquarters and Other^(d)		12			(146	)		48			(194	)		46
Eliminations^(e)		(133	)		1			(1	)		2			—
NBCUniversal		5,472			813			312			501			111
Corporate and Other		174			(64	)		14			(78	)		7
Eliminations^(e)		(367	)		(16	)		2			(18	)		—
Comcast Consolidated	$	14,878		$	4,688		$	1,930		$	2,758		$	1,174

	Three Months Ended March 31, 2011
(in millions)	Revenue^(f)			Operating Income (Loss) Before Depreciation and Amortization^(g)			Depreciation and Amortization			Operating Income (Loss)			Capital Expenditures
Cable Communications^(a)	$	9,084		$	3,749		$	1,621		$	2,128		$	1,053
NBCUniversal
Cable Networks^(b)		1,632			665			153			512			12
Broadcast Television		888			35			21			14			5
Filmed Entertainment		622			(143	)		4			(147	)		1
Theme Parks^(c)		275			97			28			69			12
Headquarters and Other^(d)		11			(96	)		22			(118	)		17
Eliminations^(e)		(285	)		(100	)		(22	)		(78	)		—
NBCUniversal		3,143			458			206			252			47
Corporate and Other		188			(141	)		16			(157	)		6
Eliminations^(e)		(287	)		—			(1	)		1			—
Comcast Consolidated	$	12,128		$	4,066		$	1,842		$	2,224		$	1,106

(a)	For the three months ended March 31, 2012 and 2011, Cable Communications segment revenue was derived from the following sources:


	Three Months Ended March 31
	2012			2011
Residential:
Video		51.8	%		53.8	%
High-speed Internet		24.2	%		23.2	%
Voice		9.1	%		9.5	%
Business services		5.6	%		4.3	%
Advertising		5.0	%		5.0	%
Other		4.3	%		4.2	%
Total		100	%		100	%

Subscription revenue received from customers who purchase bundled services at a discounted rate is allocated proportionally to each service based on the individual service’s price on a stand-alone basis. For both the three months ended March 31, 2012 and 2011, 2.8% of Cable Communications revenue was derived from franchise and other regulatory fees.

(b)	For the three months ended March 31, 2011, our Cable Networks segment included the results of operations of the businesses we contributed to NBCUniversal, as well as the results of operations of the NBCUniversal contributed cable networks for the period January 29, 2011 through March 31, 2011.

(c)	For the three months ended March 31, 2011, our Theme Parks segment included the results of operations for Universal Orlando for the period January 29, 2011 through March 31, 2011 to reflect our measure of operating performance for our Theme Parks segment.

(d)	NBCUniversal Headquarters and Other activities included costs and expenses associated with overhead, employee benefits and headquarter initiatives.

(e)

NBCUniversal eliminations for the three months ended March 31, 2011 included the elimination of the results of operations for Universal Orlando for the period January 29, 2011 through March 31, 2011. These results were not included in our consolidated results of operations for the period January 29, 2011 through March 31, 2011 because we recorded Universal Orlando as an equity method investment.

Also included in Eliminations are transactions that our segments enter into with one another. The most common types of transactions are the following:

•

our Cable Networks and Broadcast Television segments generate revenue by selling programming to our Cable Communications segment, which represents a substantial majority of the revenue elimination amount

•

our Cable Communications segment receives incentives offered by our Cable Networks segment in connection with its distribution of the Cable Networks’ content, which are recorded as a reduction to programming expenses

•

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

•

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

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

(g)

We use operating income (loss) before depreciation and amortization, excluding impairment charges related to fixed and intangible assets and gains or losses from the sale of assets, if any, as the measure of profit or loss for our operating segments. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. Additionally, it is unaffected by our capital structure or investment activities. We use this measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. We believe that this measure is useful to investors because it is one of the bases for comparing our operating performance with other companies in our industries, although our measure may not be directly comparable to similar measures used by other companies. This measure should not be considered a substitute for operating income (loss), net income attributable to Comcast Corporation, net cash provided by operating activities, or other measures of performance or liquidity we have reported in accordance with GAAP.

Note 16: Condensed Consolidating Financial Information

Comcast Corporation and four of our 100% owned cable holding company subsidiaries, Comcast Cable Communications, LLC (“CCCL Parent”), Comcast MO Group, Inc. (“Comcast MO Group”), Comcast Cable Holdings, LLC (“CCH”) and Comcast MO of Delaware, LLC (“Comcast MO of Delaware”), have fully and unconditionally guaranteed each other’s debt securities. Comcast MO Group, CCH and Comcast MO of Delaware are collectively referred to as the “Combined CCHMO Parents.”

Comcast Corporation provides an unconditional subordinated guarantee of the $185 million principal amount currently outstanding of Comcast Holdings’ ZONES due October 2029 and the $202 million principal amount currently outstanding of Comcast Holdings’ 10⁵/₈% senior subordinated debentures due 2012. Comcast Corporation does not guarantee the $62 million principal amount currently outstanding of Comcast Holdings’ ZONES due November 2029.

Condensed Consolidating Balance Sheet

March 31, 2012


(in millions)	Comcast Parent		CCCL Parent		Combined CCHMO Parents		Comcast Holdings		Non- Guarantor Subsidiaries		Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Assets
Cash and cash equivalents	$	—	$	—	$	—	$	—	$	2,207	$	—		$	2,207
Receivables, net		—		—		—		—		4,379		—			4,379
Programming rights		—		—		—		—		1,011		—			1,011
Other current assets		169		20		1		—		1,568		—			1,758
Total current assets		169		20		1		—		9,165		—			9,355
Film and television costs		—		—		—		—		5,112		—			5,112
Investments		—		—		—		—		10,149		—			10,149
Investments in and amounts due from subsidiaries eliminated upon consolidation		71,062		94,024		47,950		85,926		40,567		(339,529	)		—
Property and equipment, net		255		—		—		—		26,707		—			26,962
Franchise rights		—		—		—		—		59,364		—			59,364
Goodwill		—		—		—		—		26,803		—			26,803
Other intangible assets, net		9		—		—		—		17,992		—			18,001
Other noncurrent assets, net		882		10		5		148		1,818		(660	)		2,203
Total assets	$	72,377	$	94,054	$	47,956	$	86,074	$	197,677	$	(340,189	)	$	157,949

Liabilities and Equity
Accounts payable and accrued expenses related to trade creditors	$	11	$	—	$	—	$	—	$	5,752	$	—		$	5,763
Accrued participations and residuals		—		—		—		—		1,394		—			1,394
Accrued expenses and other current liabilities		1,132		287		24		267		4,060		—			5,770
Current portion of long-term debt		589		1,733		—		202		181		—			2,705
Total current liabilities		1,732		2,020		24		469		11,387		—			15,632
Long-term debt, less current portion		21,345		2,216		1,762		112		9,645		—			35,080
Deferred income taxes		—		—		—		734		29,595		(517	)		29,812
Other noncurrent liabilities		1,824		—		—		—		11,765		(143	)		13,446
Redeemable noncontrolling interests		—		—		—		—		16,158		—			16,158
Equity:
Common stock		31		—		—		—		—		—			31
Other shareholders’ equity		47,445		89,818		46,170		84,759		118,782		(339,529	)		47,445
Total Comcast Corporation shareholders’ equity		47,476		89,818		46,170		84,759		118,782		(339,529	)		47,476
Noncontrolling interests		—		—		—		—		345		—			345
Total equity		47,476		89,818		46,170		84,759		119,127		(339,529	)		47,821
Total liabilities and equity	$	72,377	$	94,054	$	47,956	$	86,074	$	197,677	$	(340,189	)	$	157,949

Condensed Consolidating Balance Sheet

December 31, 2011


(in millions)	Comcast Parent		CCCL Parent		Combined CCHMO Parents		Comcast Holdings		Non- Guarantor Subsidiaries		Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Assets
Cash and cash equivalents	$	—	$	—	$	—	$	—	$	1,620	$	—		$	1,620
Receivables, net		—		—		—		—		4,351		—			4,351
Programming rights		—		—		—		—		987		—			987
Other current assets		235		8		3		—		1,369		—			1,615
Total current assets		235		8		3		—		8,327		—			8,573
Film and television costs		—		—		—		—		5,227		—			5,227
Investments		—		—		—		—		9,854		—			9,854
Investments in and amounts due from subsidiaries eliminated upon consolidation		71,222		89,568		45,725		88,336		36,949		(331,800	)		—
Property and equipment, net		262		—		—		—		27,297		—			27,559
Franchise rights		—		—		—		—		59,376		—			59,376
Goodwill		—		—		—		—		26,874		—			26,874
Other intangible assets, net		9		—		—		—		18,156		—			18,165
Other noncurrent assets, net		912		30		5		148		1,761		(666	)		2,190
Total assets	$	72,640	$	89,606	$	45,733	$	88,484	$	193,821	$	(332,466	)	$	157,818

Liabilities and Equity
Accounts payable and accrued expenses related to trade creditors	$	10	$	—	$	—	$	—	$	5,695	$	—		$	5,705
Accrued participations and residuals		—		—		—		—		1,255		—			1,255
Accrued expenses and other current liabilities		1,030		189		77		272		3,346		—			4,914
Current portion of long-term debt		26		—		554		202		585		—			1,367
Total current liabilities		1,066		189		631		474		10,881		—			13,241
Long-term debt, less current portion		22,451		3,953		1,764		111		9,663		—			37,942
Deferred income taxes		—		—		—		727		29,728		(523	)		29,932
Other noncurrent liabilities		1,849		—		—		—		11,328		(143	)		13,034
Redeemable noncontrolling interests		—		—		—		—		16,014		—			16,014
Equity:
Common stock		32		—		—		—		—		—			32
Other shareholders’ equity		47,242		85,464		43,338		87,172		115,826		(331,800	)		47,242
Total Comcast Corporation shareholders’ equity		47,274		85,464		43,338		87,172		115,826		(331,800	)		47,274
Noncontrolling interests		—		—		—		—		381		—			381
Total equity		47,274		85,464		43,338		87,172		116,207		(331,800	)		47,655
Total liabilities and equity	$	72,640	$	89,606	$	45,733	$	88,484	$	193,821	$	(332,466	)	$	157,818

Condensed Consolidating Statement of Income

For the Three Months Ended March 31, 2012


(in millions)	Comcast Parent			CCCL Parent			Combined CCHMO Parents			Comcast Holdings			Non- Guarantor Subsidiaries			Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Revenue:
Service revenue	$	—		$	—		$	—		$	—		$	14,878		$	—		$	14,878
Management fee revenue		204			200			125			—			—			(529	)		—
		204			200			125			—			14,878			(529	)		14,878
Costs and Expenses:
Operating costs and expenses		92			200			125			—			10,302			(529	)		10,190
Depreciation		7			—			—			—			1,522			—			1,529
Amortization		1			—			—			—			400			—			401
		100			200			125			—			12,224			(529	)		12,120
Operating income (loss)		104			—			—			—			2,654			—			2,758
Other Income (Expense):
Interest expense		(367	)		(82	)		(36	)		(8	)		(147	)		—			(640	)
Investment income (loss), net		1			—			—			—			91			—			92
Equity in net income (losses) of investees, net		1,394			1,543			1,049			1,504			3			(5,490	)		3
Other income (expense), net		—			—			—			—			(16	)		—			(16	)
		1,028			1,461			1,013			1,496			(69	)		(5,490	)		(561	)
Income (loss) before income taxes		1,132			1,461			1,013			1,496			2,585			(5,490	)		2,197
Income tax (expense) benefit		92			29			13			3			(887	)		—			(750	)
Net income (loss)		1,224			1,490			1,026			1,499			1,698			(5,490	)		1,447
Net (income) loss attributable to noncontrolling interests		—			—			—			—			(223	)		—			(223	)
Net income (loss) attributable to Comcast Corporation	$	1,224		$	1,490		$	1,026		$	1,499		$	1,475		$	(5,490	)	$	1,224
Comprehensive income attributable to Comcast Corporation	$	1,227		$	1,492		$	1,026		$	1,499		$	1,474		$	(5,490	)	$	1,228

Condensed Consolidating Statement of Income

For the Three Months Ended March 31, 2011


(in millions)	Comcast Parent			CCCL Parent			Combined CCHMO Parents			Comcast Holdings			Non- Guarantor Subsidiaries			Elimination and Consolidation Adjustments			Consolidated Comcast Corporation
Revenue:
Service revenue	$	—		$	—		$	—		$	—		$	12,128		$	—		$	12,128
Management fee revenue		198			185			115			—			—			(498	)		—
		198			185			115			—			12,128			(498	)		12,128
Costs and Expenses:
Operating costs and expenses		148			185			115			5			8,107			(498	)		8,062
Depreciation		7			—			—			—			1,479			—			1,486
Amortization		1			—			—			—			355			—			356
		156			185			115			5			9,941			(498	)		9,904
Operating income (loss)		42			—			—			(5	)		2,187			—			2,224
Other Income (Expense):
Interest expense		(361	)		(91	)		(43	)		(8	)		(102	)		—			(605	)
Investment income (loss), net		1			—			—			4			84			—			89
Equity in net income (losses) of investees, net		1,161			1,323			794			1,292			(37	)		(4,570	)		(37	)
Other income (expense), net		(17	)		—			—			1			(20	)		—			(36	)
		784			1,232			751			1,289			(75	)		(4,570	)		(589	)
Income (loss) before income taxes		826			1,232			751			1,284			2,112			(4,570	)		1,635
Income tax (expense) benefit		117			32			15			3			(763	)		—			(596	)
Net income (loss)		943			1,264			766			1,287			1,349			(4,570	)		1,039
Net (income) loss attributable to noncontrolling interests		—			—			—			—			(96	)		—			(96	)
Net income (loss) attributable to Comcast Corporation	$	943		$	1,264		$	766		$	1,287		$	1,253		$	(4,570	)	$	943
Comprehensive income attributable to Comcast Corporation	$	941		$	1,266		$	766		$	1,287		$	1,255		$	(4,570	)	$	945

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2012


(in millions)	Comcast Parent			CCCL Parent			Combined CCHMO Parents			Comcast Holdings			Non- Guarantor Subsidiaries			Elimination and Consolidation Adjustments		Consolidated Comcast Corporation
Net cash provided by (used in) operating activities	$	(242	)	$	53		$	(77	)	$	(9	)	$	4,668		$	—	$	4,393
Investing Activities:
Net transactions with affiliates		1,639			(53	)		630			9			(2,225	)		—		—
Capital expenditures		(2	)		—			—			—			(1,172	)		—		(1,174	)
Cash paid for intangible assets		(1	)		—			—			—			(183	)		—		(184	)
Proceeds from sales of businesses and investments		—			—			—			—			35			—		35
Purchases of investments		—			—			—			—			(62	)		—		(62	)
Other		—			—			—			—			36			—		36
Net cash provided by (used in) investing activities		1,636			(53	)		630			9			(3,571	)		—		(1,349	)
Financing Activities:
Proceeds from (repayments of) short-term borrowings, net		—			—			—			—			(407	)		—		(407	)
Repurchases and repayments of debt		(563	)		—			(553	)		—			(9	)		—		(1,125	)
Repurchases and retirements of common stock		(750	)		—			—			—			—			—		(750	)
Dividends paid		(304	)		—			—			—			—			—		(304	)
Issuances of common stock		150			—			—			—			—			—		150
Distributions to noncontrolling interests		—			—			—			—			(58	)		—		(58	)
Other		73			—			—			—			(36	)		—		37
Net cash provided by (used in) financing activities		(1,394	)		—			(553	)		—			(510	)		—		(2,457	)
Increase (decrease) in cash and cash equivalents		—			—			—			—			587			—		587
Cash and cash equivalents, beginning of period		—			—			—			—			1,620			—		1,620
Cash and cash equivalents, end of period	$	—		$	—		$	—		$	—		$	2,207		$	—	$	2,207

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2011


(in millions)	Comcast Parent			CCCL Parent			Combined CCHMO Parents			Comcast Holdings			Non- Guarantor Subsidiaries			Elimination and Consolidation Adjustments		Consolidated Comcast Corporation
Net cash provided by (used in) operating activities	$	(210	)	$	24		$	(75	)	$	(15	)	$	3,744		$	—	$	3,468
Investing Activities:
Net transactions with affiliates		(102	)		976			75			15			(964	)		—		—
Capital expenditures		(2	)		—			—			—			(1,104	)		—		(1,106	)
Cash paid for intangible assets		—			—			—			—			(123	)		—		(123	)
Acquisitions, net of cash acquired		—			—			—			—			(5,658	)		—		(5,658	)
Proceeds from sales of businesses and investments		—			—			—			—			18			—		18
Purchases of investments		—			—			—			—			(16	)		—		(16	)
Other		—			—			—			—			(2	)		—		(2	)
Net cash provided by (used in) investing activities		(104	)		976			75			15			(7,849	)		—		(6,887	)
Financing Activities:
Proceeds from (repayments of) short-term borrowings, net		1,688			—			—			—			(11	)		—		1,677
Repurchases and repayments of debt		(750	)		(1,000	)		—			—			(9	)		—		(1,759	)
Repurchases and retirements of common stock		(525	)		—			—			—			—			—		(525	)
Dividends paid		(261	)		—			—			—			—			—		(261	)
Issuances of common stock		129			—			—			—			—			—		129
Distributions to noncontrolling interests		—			—			—			—			(46	)		—		(46	)
Other		33			—			—			—			9			—		42
Net cash provided by (used in) financing activities		314			(1,000	)		—			—			(57	)		—		(743	)
Increase (decrease) in cash and cash equivalents		—			—			—			—			(4,162	)		—		(4,162	)
Cash and cash equivalents, beginning of period		—			—			—			—			5,984			—		5,984
Cash and cash equivalents, end of period	$	—		$	—		$	—		$	—		$	1,822		$	—	$	1,822

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

Overview

We are a leading provider of entertainment, information and communication products and services. On January 28, 2011, we closed the NBCUniversal transaction in which we acquired control of the businesses of NBC Universal, Inc. (“NBCUniversal”), and on July 1, 2011, we closed the Universal Orlando transaction in which we acquired the remaining 50% equity interest in Universal City Development Partners, Ltd. (“Universal Orlando”) that we did not already own. We report our operations as the following five reportable business segments.

Cable Communications

We are one of the nation’s leading providers of video, high-speed Internet and voice services to residential and business customers. As of March 31, 2012, our cable systems served 22.3 million video customers, 18.6 million high-speed Internet customers and 9.5 million voice customers and passed more than 52 million homes and businesses in 39 states and the District of Columbia. Our Cable Communications segment generates revenue primarily from subscriptions to our cable services, which we market individually and in packages, and from the sale of advertising. During the three months ended March 31, 2012, our Cable Communications segment generated 64% of our consolidated revenue and over 80% of our operating income (loss) before depreciation and amortization.

NBCUniversal

NBCUniversal is a leading media and entertainment company that develops, produces and distributes entertainment, news and information, sports and other content for global audiences.

Cable Networks

Our Cable Networks segment consists primarily of our national cable networks, which provide entertainment, news and information, and sports programming, our regional sports and news networks, our international cable networks, our cable television production studio, and our related digital media properties. Our Cable Networks segment generates revenue primarily from the distribution of our cable network programming to multichannel video providers, the sale of advertising and the licensing and sale of our owned programming.

Broadcast Television

Our Broadcast Television segment consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo owned local television stations, our broadcast television production operations, and our related digital media properties. Our Broadcast Television segment generates revenue primarily from the sale of advertising and the licensing and sale of our owned programming.

Filmed Entertainment

Our Filmed Entertainment segment consists of the operations of Universal Pictures, including Focus Features, which produces, acquires, markets and distributes filmed entertainment worldwide in various media formats for theatrical, home entertainment, television and other distribution platforms. We also develop, produce and license stage plays. Our Filmed Entertainment segment generates revenue primarily from the worldwide theatrical release of our owned and acquired films, content licensing and home entertainment.

Theme Parks

Our Theme Parks segment consists primarily of our Universal theme parks in Orlando and Hollywood. We also receive fees related to intellectual property licenses and other services from third parties that own and operate Universal Studios Japan and Universal Studios Singapore. Our Theme Parks segment generates revenue primarily from theme park attendance and per capita spending, as well as from licensing and other fees. Per capita spending includes ticket price and in-park spending on food, beverage and merchandise.

Other

Our other business interests primarily include Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center, a large, multipurpose arena in Philadelphia. Comcast Spectacor also owns Global Spectrum, which provides facilities management services, and Ovations Food Services, which provides food services for sporting events, concerts and other events.

Consolidated Operating Results


	Three Months Ended March 31						Increase/ (Decrease)
(in millions)	2012			2011
Revenue	$	14,878		$	12,128			22.7	%
Costs and Expenses:
Operating costs and expenses		10,190			8,062			26.4
Depreciation		1,529			1,486			2.9
Amortization		401			356			12.3
Operating income		2,758			2,224			24.0
Other income (expense) items, net		(561	)		(589	)		(4.8	)
Income before income taxes		2,197			1,635			34.4
Income tax expense		(750	)		(596	)		26.0
Net income		1,447			1,039			39.3
Net (income) loss attributable to noncontrolling interests		(223	)		(96	)		134.4
Net income attributable to Comcast Corporation	$	1,224		$	943			29.7	%

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

The comparability of our consolidated results of operations was impacted by the NBCUniversal transaction, which closed on January 28, 2011, and the Universal Orlando transaction, which closed on July 1, 2011. NBCUniversal’s and Universal Orlando’s results of operations are included in our consolidated financial statements following their respective acquisition dates.

We also incurred significant transaction costs directly related to the NBCUniversal transaction during the three months ended March 31, 2011. Incremental expenses were primarily related to legal, accounting and valuation services and investment banking fees. In addition, NBCUniversal incurred transaction-related costs associated with severance and other related compensation charges. Total transaction-related expenses incurred during the three months ended March 31, 2011 were $123 million.

For a more complete discussion of the NBCUniversal and Universal Orlando transactions, refer to our consolidated financial statements included in our 2011 Annual Report on Form 10-K.

Each of our businesses is subject to seasonal and cyclical variations. Revenue and operating costs and expenses in our Broadcast Television segment are cyclical as a result of our periodic broadcasts of the Olympic Games and Super Bowl games. During the three months ended March 31, 2012, we broadcast the 2012 Super Bowl. Our advertising revenue increased as a result of increased demand for advertising time and our operating costs and expenses also increased as a result of our production costs and amortization of the related rights fees.

Consolidated Revenue

Our Cable Communications segment and the NBCUniversal segments accounted for substantially all of the increase in consolidated revenue for the three months ended March 31, 2012. The remaining changes in consolidated revenue related to our other business activities, primarily Comcast Spectacor. Revenue for our Cable Communications and NBCUniversal segments is discussed separately under the heading “Segment Operating Results.”

Consolidated Operating Costs and Expenses

Our Cable Communications segment and the NBCUniversal segments accounted for substantially all of the increase in consolidated operating costs and expenses for the three months ended March 31, 2012. The remaining changes in consolidated operating costs and expenses related to our other business activities, primarily Comcast Spectacor. Operating costs and expenses for our Cable Communications and NBCUniversal segments are discussed separately under the heading “Segment Operating Results.”

Consolidated Depreciation and Amortization

Consolidated depreciation and amortization increased for the three months ended March 31, 2012 primarily due to the NBCUniversal and Universal Orlando transactions.

Segment Operating Results

Our segment operating results are presented based on how we assess operating performance and internally report financial information. We use operating income (loss) before depreciation and amortization, excluding impairment charges related to fixed and intangible assets and gains or losses from the sale of assets, if any, as the measure of profit or loss for our operating segments. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. Additionally, it is unaffected by our capital structure or investment activities. We use this measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. We believe that this measure is useful to investors because it is one of the bases for comparing our operating performance with other companies in our industries, although our measure may not be directly comparable to similar measures used by other companies. Because we use operating income (loss) before depreciation and amortization to measure our segment profit or loss, we reconcile it to operating income, the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), in Note 15 to our condensed consolidated financial statements. This measure should not be considered a substitute for operating income (loss), net income attributable to Comcast Corporation, net cash provided by operating activities, or other measures of performance or liquidity we have reported in accordance with GAAP.

Cable Communications Segment—Results of Operations


	Three Months Ended March 31				Increase/ (Decrease)
(in millions)	2012		2011		$			%
Revenue
Residential:
Video	$	4,969	$	4,891	$	78			1.6	%
High-speed Internet		2,323		2,106		217			10.3
Voice		878		860		18			2.0
Business services		541		394		147			37.0
Advertising		476		455		21			4.8
Other		412		378		34			8.9
Total revenue		9,599		9,084		515			5.7
Operating costs and expenses
Programming		2,076		1,969		107			5.5
Technical labor		588		593		(5	)		(0.9	)
Customer service		494		469		25			5.2
Marketing		630		564		66			11.7
Other		1,856		1,740		116			6.6
Total operating costs and expenses		5,644		5,335		309			5.8
Operating income before depreciation and amortization	$	3,955	$	3,749	$	206			5.5	%

Customer Metrics


	Total Customers				Net Additional Customers
					Three Months Ended
(in thousands)	March 31, 2012		March 31, 2011		March 31, 2012
Video customers		22,294		22,751		(37)
High-speed Internet customers		18,582		17,403		439
Voice customers		9,506		8,870		164

Customer data include residential and business customers.

Cable Communications Segment—Revenue

Our average monthly total revenue per video customer for the three months ended March 31, 2012 increased to $143 from $133 for the three months ended March 31, 2011. The increase in average monthly total revenue per video customer was primarily due to increases in the number of residential customers receiving multiple services, rate adjustments, higher contributions from business services and declines in the total number of video customers.

Video

Our video revenue increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to rate adjustments, offset by declines in the number of residential video customers. For the three months ended March 31, 2012, the number of video customers decreased primarily due to competitive pressures in our service areas. We expect further declines in the number of residential video customers during the remainder of 2012. As of March 31, 2012, 54% of our digital video customers subscribed to at least one of our high-definition television (“HDTV”) and digital video recorder (“DVR”) services.

High-Speed Internet

Our high-speed Internet revenue increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to increases in the number of residential customers, rate adjustments and additional customers receiving higher levels of service.

Voice

Our voice revenue increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to increases in the number of residential customers.

Business Services

Our business services revenue increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to increases in the number of customers.

Advertising

Our advertising revenue increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to improvements in the local advertising market.

Other

Our other revenue increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to an increase in franchise and other regulatory fees.

Cable Communications Segment—Operating Costs and Expenses

Programming expenses increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to increases in rates and additional programming options offered to our customers. Technical labor expenses remained relatively flat for the three months ended March 31, 2012 compared to the same period in 2011. Customer service expenses increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to an increase in personnel costs associated with higher levels of customer service activity. Marketing expenses increased for the three months ended March 31, 2012 compared to the same

period in 2011 primarily due to increases in sales employees and media spending for residential and business services. Other operating costs and expenses increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to an increase in activity related to business services and an increase in franchise and other regulatory fees.

NBCUniversal Segments Overview

The discussion below compares the NBCUniversal segments’ actual results for the three months ended March 31, 2012 to pro forma combined results for the three months ended March 31, 2011. Management believes reviewing our operating results by combining actual and pro forma results for the NBCUniversal segments for 2011 is more useful in identifying trends in, or reaching conclusions regarding, the overall operating performance of these segments for the current period. Our pro forma amounts presented in the tables below include adjustments as if the NBCUniversal and Universal Orlando transactions had occurred on January 1, 2010. Our pro forma data was also adjusted for the effects of acquisition accounting and the elimination of costs and expenses directly related to the transactions but does not include adjustments for costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined businesses. Pro forma amounts are not necessarily indicative of what our results would have been had we operated the NBCUniversal contributed businesses or Universal Orlando since January 1, 2010, nor of our future results.

The operating results of the NBCUniversal segments for the three months ended March 31, 2012 and 2011 are presented in the table below.


	2012			2011
	Actual^(a)			Actual^(a)			Pro Forma^(b)			Pro Forma Combined			Increase/ (Decrease)
(in millions)	Three Months Ended March 31			Three Months Ended March 31			NBCUniversal Businesses			Three Months Ended March 31			$			%
Revenue
Cable Networks	$	2,138		$	1,632		$	388		$	2,020		$	118			5.8	%
Broadcast Television		1,851			888			464			1,352			499			36.9
Filmed Entertainment		1,192			622			353			975			217			22.3
Theme Parks		412			275			115			390			22			5.7
Headquarters, other and eliminations		(121	)		(274	)		176			(98	)		(23	)		(23.4	)
Total revenue	$	5,472		$	3,143		$	1,496		$	4,639		$	833			18.0	%
Operating Income Before Depreciation and Amortization
Cable Networks	$	805		$	665		$	152		$	817		$	(12	)		(1.4	)%
Broadcast Television		(10	)		35			(15	)		20			(30	)		(149.4	)
Filmed Entertainment		6			(143	)		(3	)		(146	)		152			104.3
Theme Parks		157			97			37			134			23			17.1
Headquarters, other and eliminations		(145	)		(196	)		(24	)		(220	)		75			33.6
Total operating income before depreciation and amortization	$	813		$	458		$	147		$	605		$	208			34.3	%

(a)

Actual amounts include the results of operations of the businesses we contributed to NBCUniversal for the three months ended March 31, 2012 and 2011, as well as the results of operations for the NBCUniversal acquired businesses and Universal Orlando for the three months ended March 31, 2012 and for the period January 29, 2011 through March 31, 2011. Headquarters, other and eliminations includes the elimination of the results of operations for Universal Orlando for the period January 29, 2011 through March 31, 2011 in order to reconcile to our condensed consolidated financial statements because Universal Orlando was recorded as an equity method investment during that period.

(b)	Pro forma amounts include the results of operations for the NBCUniversal acquired businesses and Universal Orlando for the period January 1, 2011 through January 28, 2011 and other pro forma adjustments that include the effects of acquisition accounting.

Cable Networks Segment—Actual and Pro Forma Results of Operations


	2012		2011
	Actual^(a)		Actual^(a)		Pro Forma^(b)		Pro Forma Combined		Increase/ (Decrease)
	Three Months Ended		Three Months Ended		NBCUniversal		Three Months Ended
(in millions)	March 31		March 31		Businesses		March 31		$			%
Revenue
Distribution	$	1,143	$	913	$	188	$	1,101	$	42			3.8	%
Advertising		814		607		162		769		45			5.9
Other		181		112		38		150		31			20.5
Total revenue		2,138		1,632		388		2,020		118			5.8
Operating costs and expenses		1,333		967		236		1,203		130			10.7
Operating income before depreciation and amortization	$	805	$	665	$	152	$	817	$	(12	)		(1.4	)%

(a)

Actual amounts include the results of operations for the Comcast Content Business for the three months ended March 31, 2012 and 2011, and the results of operations for the NBCUniversal acquired businesses for the three months ended March 31, 2012 and for the period January 29, 2011 through March 31, 2011.

(b)

Pro forma amounts include the results of operations for the NBCUniversal acquired businesses for the period January 1, 2011 through January 28, 2011 and other pro forma adjustments that include the effects of acquisition accounting and the elimination of operating costs and expenses directly related to the transaction.

Cable Networks Segment—Revenue

Our Cable Networks revenue increased for the three months ended March 31, 2012 compared to the same period in 2011 due to increases in distribution, advertising and other revenue. The increase in distribution revenue was primarily due to rate increases, and the increase in advertising revenue was primarily due to an increase in the price of advertising units sold. Other revenue increased primarily due to an increase in the licensing of our owned content from our cable production studio.

For the three months ended March 31, 2012 and 2011, 13% and 14%, respectively, of our total Cable Networks segment revenue was generated from our Cable Communications segment. These amounts are eliminated in our condensed consolidated financial statements but are included in the amounts presented above.

Cable Networks Segment—Operating Costs and Expenses

Our operating costs and expenses increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to higher programming and production expenses, including an increase in rights costs associated with additional NBA games in the current period compared to the prior year period, resulting from the condensed NBA schedule following the lockout at the beginning of the 2011-12 season.

Broadcast Television Segment—Actual and Pro Forma Results of Operations


	2012			2011
	Actual^(a)			Actual^(a)		Pro Forma^(b)			Pro Forma Combined		Increase/ (Decrease)
(in millions)	Three Months Ended March 31			For the Period January 29 through March 31		NBCUniversal Businesses			Three Months Ended March 31		$			%
Revenue
Advertising	$	1,266		$	595	$	315		$	910	$	356			39.2	%
Content licensing		457			219		111			330		127			38.5
Other		128			74		38			112		16			13.2
Total revenue		1,851			888		464			1,352		499			36.9
Operating costs and expenses		1,861			853		479			1,332		529			39.6
Operating income (loss) before depreciation and amortization	$	(10	)	$	35	$	(15	)	$	20	$	(30	)		(149.4	)%

(a)	Actual amounts include the results of operations for the NBCUniversal acquired businesses for the three months ended March 31, 2012 and for the period January 29, 2011 through March 31, 2011.

(b)	Pro forma amounts include the results of operations for the NBCUniversal acquired businesses for the period January 1, 2011 through January 28, 2011 and other pro forma adjustments that include the effects of acquisition accounting.

Broadcast Television Segment—Revenue

Our Broadcast Television revenue increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to increases in both advertising and content licensing revenue. The increase in advertising revenue was primarily due to $259 million associated with the broadcast of the 2012 Super Bowl, as well as increases in the price of advertising units sold and increases in our primetime ratings. The increase in content licensing revenue was primarily due to content made available under licensing agreements that were not in effect in the prior year period.

Broadcast Television Segment—Operating Costs and Expenses

Our operating costs and expenses increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to higher programming and production expenses associated with our broadcast of the 2012 Super Bowl. We also incurred higher programming, production and advertising costs associated with our mid-season primetime schedule.

Filmed Entertainment Segment—Actual and Pro Forma Results of Operations


	2012		2011
	Actual^(a)		Actual^(a)			Pro Forma^(b)			Pro Forma Combined			Increase/ (Decrease)
(in millions)	Three Months Ended March 31		For the Period January 29 through March 31			NBCUniversal Businesses			Three Months Ended March 31			$		%
Revenue
Theatrical	$	301	$	119		$	58		$	177		$	124		70.1	%
Content licensing		401		218			171			389			12		3.1
Home entertainment		380		207			96			303			77		25.3
Other		110		78			28			106			4		4.4
Total revenue		1,192		622			353			975			217		22.3
Operating costs and expenses		1,186		765			356			1,121			65		5.8
Operating income (loss) before depreciation and amortization	$	6	$	(143	)	$	(3	)	$	(146	)	$	152		104.3	%

(a)	Actual amounts include the results of operations for the NBCUniversal acquired businesses for the three months ended March 31, 2012 and for the period January 29, 2011 through March 31, 2011.

(b)	Pro forma amounts include the results of operations for the NBCUniversal acquired businesses for the period January 1, 2011 through January 28, 2011 and other pro forma adjustments that include the effects of acquisition accounting.

Filmed Entertainment Segment—Revenue

Our Filmed Entertainment revenue increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to increases in theatrical and home entertainment revenue. The increase in theatrical revenue was primarily due to the release of Dr. Seuss’ The Lorax and Safe House. The increase in home entertainment revenue was primarily due to an increase in the number of titles released, which included Hop and Tower Heist.

Filmed Entertainment Segment—Operating Costs and Expenses

Our operating costs and expenses increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to higher amortization of film costs resulting from the corresponding increase in theatrical revenue.

Theme Parks Segment—Actual and Pro Forma Results of Operations


	2012		2011
	Actual^(a)		Actual^(a)		Pro Forma^(b)		Pro Forma Combined		Increase/ (Decrease)
(in millions)	Three Months Ended March 31		For the Period January 29 through March 31		NBCUniversal Businesses		Three Months Ended March 31		$			%
Revenue	$	412	$	275	$	115	$	390	$	22			5.7	%
Operating costs and expenses		255		178		78		256		(1	)		(0.3	)
Operating income before depreciation and amortization	$	157	$	97	$	37	$	134	$	23			17.1	%

(a)

Actual amounts include the results of operations for the NBCUniversal acquired businesses and Universal Orlando for the three months ended March 31, 2012 and for the period January 29, 2011 through March 31, 2011. The results of operations for Universal Orlando for the period January 29, 2011 through March 31, 2011 are included in our segment results but are not included in our consolidated results because Universal Orlando was recorded as an equity method investment during that period.

(b)	Pro forma amounts include the results of operations for the NBCUniversal acquired businesses and Universal Orlando for the period January 1, 2011 through January 28, 2011 and other pro forma adjustments that include the effects of acquisition accounting.

Theme Parks Segment—Revenue

Our Theme Parks segment revenue increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to increases in per capita spending and international guest attendance at our Universal theme parks.

Theme Parks Segment—Operating Costs and Expenses

Our Theme Parks segment operating costs and expenses remained relatively flat for the three months ended March 31, 2012 compared to the same period in 2011.

Headquarters, Other and Eliminations

Headquarters and other operating costs and expenses decreased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to transaction-related costs associated with the NBCUniversal transaction, including severance and other compensation-related costs, included in the prior year period.

Eliminations include the results of operations for Universal Orlando for the period January 29, 2011 through March 31, 2011. Our Theme Parks segment includes the results of operations of Universal Orlando for this period because these amounts reflect our segment performance measure. These amounts are not included when we measure total NBCUniversal and our consolidated results of operations because we recorded Universal Orlando as an equity method investment for the period January 29, 2011 through March 31, 2011.

Consolidated Other Income (Expense) Items


	Three Months Ended March 31
(in millions)	2012			2011
Interest expense	$	(640	)	$	(605	)
Investment income (loss), net		92			89
Equity in net income (losses) of investees, net		3			(37	)
Other income (expense), net		(16	)		(36	)
Total	$	(561	)	$	(589	)

Interest Expense

Interest expense increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to interest expense related to NBCUniversal and Universal Orlando.

Investment Income (Loss), Net

The components of investment income (loss), net for the three months ended March 31, 2012 and 2011 are presented in a table in Note 4 to our condensed consolidated financial statements.

Consolidated Income Tax Expense

Income tax expense for the three months ended March 31, 2012 and 2011 reflects an effective income tax rate that differs from the federal statutory rate primarily due to state income taxes, interest on uncertain tax positions, the partnership structure of NBCUniversal and foreign income taxes. We expect our 2012 annual effective tax rate to be in the range of 35% to 40%.

Consolidated Net (Income) Loss Attributable to Noncontrolling Interests

Net (income) loss attributable to noncontrolling interests increased for the three months ended March 31, 2012 compared to the same period in 2011 primarily due to the increase in GE’s allocated share of the earnings of NBCUniversal.

Liquidity and Capital Resources

Our businesses generate significant cash flows from operating activities. We believe that we will be able to continue to meet our current and long-term liquidity and capital requirements, including fixed charges, as well as potential future redemptions of GE’s noncontrolling equity interest in NBCUniversal, through our cash flows from operating activities, existing cash, cash equivalents and investments, available borrowings under our existing credit facilities, and our ability to obtain future external financing.

We anticipate that we will continue to use a substantial portion of our cash flows to meet our debt repayment obligations, to fund our capital expenditures, to invest in business opportunities, and to return capital to shareholders. The cash flows generated from our Cable Communications segment and other businesses are used to invest in their respective core businesses and return capital to shareholders. The cash flows generated from NBCUniversal are used to invest in its core businesses and to fund potential future redemptions of GE’s noncontrolling interest in NBCUniversal.

Operating Activities

Components of Net Cash Provided by Operating Activities


	Three Months Ended March 31
(in millions)	2012			2011
Operating income	$	2,758		$	2,224
Depreciation and amortization		1,930			1,842
Operating income before depreciation and amortization		4,688			4,066
Noncash share-based compensation		89			84
Changes in operating assets and liabilities		346			7
Cash basis operating income		5,123			4,157
Payments of interest		(614	)		(657	)
Payments of income taxes		(118	)		(74	)
Proceeds from interest, dividends and other nonoperating items		2			42
Net cash provided by operating activities	$	4,393		$	3,468

The changes in operating assets and liabilities for the three months ended March 31, 2012 compared to the same period in 2011 primarily relate to the timing of payments of operating items, including payroll and participations and residuals, and a decrease in film and television costs.

The decrease in interest payments for the three months ended March 31, 2012 compared to the same period in 2011 was primarily due to the repayment of certain of our debt obligations.

The increase in income tax payments for the three months ended March 31, 2012 compared to the same period in 2011 was primarily due to federal tax payments made in 2012 that related to 2011.

Investing Activities

Net cash used in investing activities for the three months ended March 31, 2012 consisted primarily of capital expenditures and cash paid for intangible assets.

Financing Activities

Net cash used in financing activities for the three months ended March 31, 2012 consisted primarily of repayments of debt, repurchases of our common stock, repayments of our short-term borrowings and dividend payments.

We have made, and may from time to time in the future make, optional repayments on our debt obligations, which may include repurchases of our outstanding public notes and debentures, depending on various factors, such as market conditions.

Available Borrowings Under Credit Facilities

We maintain significant availability under our lines of credit and our commercial paper programs to meet our short-term liquidity requirements. As of March 31, 2012, $6.5 billion was available under Comcast’s and Comcast Cable Communications’ revolving credit facilities and $1.3 billion was available under NBCUniversal’s revolving credit facility.

Share Repurchases and Dividends

In February 2012, our Board of Directors approved a $6.5 billion share repurchase authorization that does not have an expiration date. Under this authorization, we may repurchase shares in the open market or in private transactions. We intend to repurchase $3.0 billion during 2012, subject to market conditions. During the three months ended March 31, 2012, we repurchased 26 million shares of our Class A Special common stock for $750 million.

In February 2012, our Board of Directors approved an increase to our dividend of 44% to $0.65 per share on an annualized basis and approved our first quarter dividend of $0.1625 per share, totaling $439 million, which was paid in April 2012. We expect to continue to pay quarterly dividends, although each dividend is subject to approval by our Board of Directors.

Critical Accounting Judgments and Estimates

The preparation of our condensed consolidated financial statements requires us to make estimates that affect the reported amounts of assets, liabilities, revenue and expenses, and the related disclosure of contingent 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 values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

For a more complete discussion of the accounting judgments and estimates that we have identified as critical in the preparation of our condensed consolidated financial statements, please refer to our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2011 Annual Report on Form 10-K.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have evaluated the information required under this item that was disclosed in our 2011 Annual Report on Form 10-K and there have been no significant changes to this information.

ITEM 4: CONTROLS AND PROCEDURES

Conclusions regarding disclosure controls and procedures

Our principal executive and principal financial officers, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report, have concluded that, based on the evaluation of these controls and procedures required by paragraph (b) of Exchange Act Rules 13a-15 or 15d-15, our disclosure controls and procedures were effective.

Changes in internal control over financial reporting

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

PART II: OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

Refer to Note 14 to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for a discussion of recent developments related to our legal proceedings.

ITEM 1A: RISK FACTORS

There have been no significant changes from the risk factors previously disclosed in Item 1A of our 2011 Annual Report on Form 10-K.

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

The table below summarizes our Class A Special common stock repurchases under our Board-authorized share repurchase program during the three months ended March 31, 2012.

Purchase of Equity Securities


Period	Total Number of Shares Purchased		Average Price Per Share		Total Number of Shares Purchased as Part of Publicly Announced Authorization		Total Dollar Amount Purchased Under the Authorization		Maximum Dollar Value of Shares That May Yet Be Purchased Under the Authorization^(a)
January 1-31, 2012		225,890	$	24.95		—	$	—	$	6,500,000,000
February 1-29, 2012		7,044	$	28.39		—	$	—	$	6,500,000,000
March 1-31, 2012		25,903,672	$	28.95		25,903,672	$	750,000,000	$	5,750,000,000
Total		26,136,606	$	28.92		25,903,672	$	750,000,000	$	5,750,000,000

(a)

The total number of Class A Special common stock shares repurchased during the three months ended March 31, 2012 includes 232,934 shares received in the administration of employee share-based compensation plans.

ITEM 6: EXHIBITS


Exhibit No.		Description
10.1*		Form of Restricted Stock Unit Award under the Comcast Corporation 2002 Restricted Stock Plan.
31		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following financial statements from Comcast Corporation’s Quarterly Report on Form 10-Q for the three months ended March 31, 2012, filed with the Securities and Exchange Commission on May 2, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheet; (ii) the Condensed Consolidated Statement of Income; (iii) the Condensed Consolidated Statement of Comprehensive Income; (iv) the Condensed Consolidated Statement of Cash Flows; (v) the Condensed Consolidated Statement of Changes in Equity; and (vi) the Notes to Condensed Consolidated Financial Statements.

*	Constitutes a management contract or compensatory plan or arrangement.

SIGNATURES

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

COMCAST CORPORATION

By: /s/ LAWRENCE J. SALVA

Lawrence J. Salva

Senior Vice President, Chief Accounting Officer
and Controller
(Principal Accounting Officer)

Date: May 2, 2012

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