COMCAST CORP - Quarter Report: 2020 March (Form 10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)



☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020



☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to




Commission File Number	Exact Name of Registrant; State of Incorporation; Address and Telephone Number of Principal Executive Offices	I.R.S. Employer Identification No.
001-32871	COMCAST CORPORATION	27-0000798

Pennsylvania

One Comcast Center

Philadelphia, PA 19103-2838

(215) 286-1700

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.01 par value	CMCSA	NASDAQ Global Select Market
0.250% Notes due 2027	CMCS27	NASDAQ Global Market
1.500% Notes due 2029	CMCS29	NASDAQ Global Market
0.750% Notes due 2032	CMCS32	NASDAQ Global Market
1.875% Notes due 2036	CMCS36	NASDAQ Global Market
1.250% Notes due 2040	CMCS40	NASDAQ Global Market
9.455% Guaranteed Notes due 2022	CMCSA/22	New York Stock Exchange
5.50% Notes due 2029	CCGBP29	New York Stock Exchange
2.0% Exchangeable Subordinated Debentures due 2029	CCZ	New York Stock Exchange

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

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



Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐	Emerging growth company	☐

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

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

As of March 31, 2020, there were 4,554,648,825 shares of Comcast Corporation Class A common stock and 9,444,375 shares of Class B common stock outstanding.

TABLE OF CONTENTS



		Page Number
PART I. FINANCIAL INFORMATION
Item 1.	Comcast Corporation Financial Statements	1
	Condensed Consolidated Statement of Income (Unaudited)	1
	Condensed Consolidated Statement of Comprehensive Income (Unaudited)	2
	Condensed Consolidated Statement of Cash Flows (Unaudited)	3
	Condensed Consolidated Balance Sheet (Unaudited)	4
	Condensed Consolidated Statement of Changes in Equity (Unaudited)	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 5.	Other Information	35
Item 6.	Exhibits	36
SIGNATURES		37

Explanatory Note

Beginning with this Quarterly Report on Form 10-Q for the three months ended March 31, 2020, we are voluntarily complying with new disclosure rules for guarantors and issuers of guaranteed debt securities issued by the Securities and Exchange Commission (“SEC”) in March 2020, as permitted by the transition guidance contained in the SEC’s final rule release “Financial Disclosures about Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities.” As a result, this report includes new disclosures related to our consolidated subsidiaries that guarantee or have issued guaranteed debt securities registered with the SEC that are included within our guarantee structure (refer to Guarantee Structure within the Liquidity and Capital Resources section of Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations). As a result of these rules, NBCUniversal Media, LLC is no longer required to prepare stand-alone periodic reports under SEC rules, and our periodic reports are no longer prepared as a combined report being filed separately by Comcast Corporation and NBCUniversal Media, LLC.

Unless indicated otherwise, throughout this Quarterly Report on Form 10-Q, we refer to Comcast and its consolidated subsidiaries, as “Comcast,” “we,” “us” and “our;” Comcast Cable Communications, LLC and its consolidated subsidiaries as “Comcast Cable;” Comcast Holdings Corporation as “Comcast Holdings;” NBCUniversal, LLC as “NBCUniversal Holdings;” NBCUniversal Enterprise, Inc. as “NBCUniversal Enterprise;” NBCUniversal Media, LLC and its consolidated subsidiaries as “NBCUniversal;” and Sky Limited and its consolidated subsidiaries as “Sky.”

This Quarterly Report on Form 10-Q is for the three months ended March 31, 2020. This Quarterly Report on Form 10-Q modifies and supersedes documents filed before it. The 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 on Form 10-Q. In addition, information that we file with the SEC in the future will automatically update and supersede information contained in this Quarterly Report on Form 10-Q.

You should carefully review the information contained in this Quarterly Report on Form 10-Q and particularly consider any risk factors set forth in this Quarterly Report on Form 10-Q and in other reports or documents that we file from time to time with the SEC. In this Quarterly Report on Form 10-Q, 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 these words, and other comparable words. You should be aware that these statements are only our predictions. In evaluating these statements, you should consider various factors, including the risks outlined below and in other reports we file with the SEC. Actual events or our actual results could differ materially from

our forward-looking statements as a result of any such factors, which could adversely affect our businesses, results of operations or financial condition. We undertake no obligation to update any forward-looking statements.

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


•	the COVID-19 pandemic could have a material adverse effect on our businesses and results of operations


•	our businesses operate in highly competitive and dynamic industries, and our businesses and results of operations could be adversely affected if we do not compete effectively


•	changes in consumer behavior driven by online video distribution platforms for viewing content continue to adversely affect our businesses and challenge existing business models


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


•	our businesses depend on keeping pace with technological developments


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


•	programming expenses for our video services are increasing, which could adversely affect Cable Communications’ and Sky’s video businesses


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


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


•	less favorable telecommunications access regulations, the loss of Sky’s transmission agreements with satellite or telecommunications providers or the renewal of these agreements on less favorable terms could adversely affect Sky’s businesses


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


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


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


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


•	acquisitions and other strategic initiatives present many risks, and we may not realize the financial and strategic goals that we had contemplated


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


•	unfavorable litigation or governmental investigation results could require us to pay significant amounts or lead to onerous operating procedures


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


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


•	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

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PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

Comcast Corporation

Condensed Consolidated Statement of Income

(Unaudited)



	Three Months Ended March 31,
(in millions, except per share data)	2020			2019
Revenue	$	26,609		$	26,859
Costs and Expenses:
Programming and production	8,301			8,569
Other operating and administrative	8,254			7,900
Advertising, marketing and promotion	1,938			1,888
Depreciation	2,107			2,240
Amortization	1,157			1,080
Total costs and expenses	21,757			21,677
Operating income	4,852			5,182
Interest expense	(1,212		)	(1,150		)
Investment and other income (loss), net	(716		)	676
Income before income taxes	2,924			4,708
Income tax expense	(700		)	(1,076		)
Net income	2,224			3,632
Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock	77			79
Net income attributable to Comcast Corporation	$	2,147		$	3,553
Basic earnings per common share attributable to Comcast Corporation shareholders	$	0.47		$	0.78
Diluted earnings per common share attributable to Comcast Corporation shareholders	$	0.46		$	0.77

See accompanying notes to condensed consolidated financial statements.

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Comcast Corporation

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)



	Three Months Ended March 31,
(in millions)	2020			2019
Net income	$	2,224		$	3,632
Unrealized gains (losses) on marketable securities, net of deferred taxes of $— and $—	1			1
Deferred gains (losses) on cash flow hedges, net of deferred taxes of $10 and $9	54			(59		)
Amounts reclassified to net income:
Realized (gains) losses on cash flow hedges, net of deferred taxes of $17 and $(11)	(106		)	58
Employee benefit obligations, net of deferred taxes of $3 and $3	(8		)	(7		)
Currency translation adjustments, net of deferred taxes of $(7) and $(12)	(2,157		)	807
Comprehensive income	8			4,432
Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock	77			79
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(25		)	10
Comprehensive income (loss) attributable to Comcast Corporation	$	(44	)	$	4,343

See accompanying notes to condensed consolidated financial statements.

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Comcast Corporation

Condensed Consolidated Statement of Cash Flows

(Unaudited)



	Three Months Ended March 31,
(in millions)	2020			2019
Operating Activities
Net income	$	2,224		$	3,632
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,264			3,320
Share-based compensation	298			245
Noncash interest expense (income), net	227			77
Net (gain) loss on investment activity and other	791			(498		)
Deferred income taxes	(120		)	271
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables, net	198			449
Film and television costs, net	3			559
Accounts payable and accrued expenses related to trade creditors	(727		)	(574		)
Other operating assets and liabilities	(334		)	(250		)
Net cash provided by operating activities	5,824			7,231
Investing Activities
Capital expenditures	(1,881		)	(2,092		)
Cash paid for intangible assets	(618		)	(547		)
Construction of Universal Beijing Resort	(371		)	(220		)
Acquisitions, net of cash acquired	(194		)	(48		)
Proceeds from sales of businesses and investments	17			37
Purchases of investments	(69		)	(439		)
Other	15			83
Net cash provided by (used in) investing activities	(3,101		)	(3,226		)
Financing Activities
Proceeds from (repayments of) short-term borrowings, net	—			(1,288		)
Proceeds from borrowings	9,281			222
Repurchases and repayments of debt	(7,439		)	(2,084		)
Repurchases of common stock under employee plans	(233		)	(247		)
Dividends paid	(977		)	(869		)
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock	(76		)	(85		)
Other	(182		)	26
Net cash provided by (used in) financing activities	374			(4,325		)
Impact of foreign currency on cash, cash equivalents and restricted cash	(77		)	8
Increase (decrease) in cash, cash equivalents and restricted cash	3,020			(312		)
Cash, cash equivalents and restricted cash, beginning of period	5,589			3,909
Cash, cash equivalents and restricted cash, end of period	$	8,609		$	3,597

See accompanying notes to condensed consolidated financial statements.

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Comcast Corporation

Condensed Consolidated Balance Sheet

(Unaudited)



(in millions, except share data)	March 31, 2020			December 31, 2019
Assets
Current Assets:
Cash and cash equivalents	$	8,516		$	5,500
Receivables, net	10,800			11,292
Programming rights	—			3,877
Other current assets	4,768			4,723
Total current assets	24,084			25,392
Film and television costs	12,385			8,933
Investments	6,468			6,989
Investment securing collateralized obligation	612			694
Property and equipment, net of accumulated depreciation of $53,566 and $53,239	48,442			48,322
Goodwill	67,218			68,725
Franchise rights	59,365			59,365
Other intangible assets, net of accumulated amortization of $16,292 and $17,217	34,672			36,128
Other noncurrent assets, net	9,175			8,866
Total assets	$	262,421		$	263,414
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses related to trade creditors	$	9,963		$	10,826
Accrued participations and residuals	1,894			1,730
Deferred revenue	2,634			2,768
Accrued expenses and other current liabilities	10,136			10,516
Current portion of long-term debt	2,973			4,452
Total current liabilities	27,600			30,292
Long-term debt, less current portion	100,604			97,765
Collateralized obligation	5,166			5,166
Deferred income taxes	27,865			28,180
Other noncurrent liabilities	17,144			16,765
Commitments and contingencies (Note 12)
Redeemable noncontrolling interests and redeemable subsidiary preferred stock	1,259			1,372
Equity:
Preferred stock—authorized, 20,000,000 shares; issued, zero	—			—
Class A common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 5,427,439,853 and 5,416,381,298; outstanding, 4,554,648,825 and 4,543,590,270	54			54
Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375	—			—
Additional paid-in capital	38,597			38,447
Retained earnings	51,516			50,695
Treasury stock, 872,791,028 Class A common shares	(7,517		)	(7,517		)
Accumulated other comprehensive income (loss)	(1,144		)	1,047
Total Comcast Corporation shareholders’ equity	81,506			82,726
Noncontrolling interests	1,277			1,148
Total equity	82,783			83,874
Total liabilities and equity	$	262,421		$	263,414

See accompanying notes to condensed consolidated financial statements.

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Comcast Corporation

Condensed Consolidated Statement of Changes in Equity

(Unaudited)



	Three Months Ended March 31,
(in millions, except per share data)	2020			2019
Redeemable Noncontrolling Interests and Redeemable Subsidiary Preferred Stock
Balance, beginning of period	$	1,372		$	1,316
Contributions from (distributions to) noncontrolling interests, net	(27		)	(20		)
Other	(153		)	(8		)
Net income (loss)	67			28
Balance, end of period	$	1,259		$	1,316

Class A common stock
Balance, beginning of period	$	54		$	54
Balance, end of period	$	54		$	54

Additional Paid-In Capital
Balance, beginning of period	$	38,447		$	37,461
Stock compensation plans	212			174
Repurchases of common stock under employee plans	(93		)	(62		)
Employee stock purchase plans	54			48
Other	(23		)	—
Balance, end of period	$	38,597		$	37,621

Retained Earnings
Balance, beginning of period	$	50,695		$	41,983
Cumulative effects of adoption of accounting standards	(124		)	—
Repurchases of common stock under employee plans	(142		)	(193		)
Dividends declared	(1,064		)	(964		)
Other	4			—
Net income (loss)	2,147			3,553
Balance, end of period	$	51,516		$	44,379

Treasury Stock at Cost
Balance, beginning of period	$	(7,517	)	$	(7,517	)
Balance, end of period	$	(7,517	)	$	(7,517	)

Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period	$	1,047		$	(368	)
Other comprehensive income (loss)	(2,191		)	790
Balance, end of period	$	(1,144	)	$	422

Noncontrolling Interests
Balance, beginning of period	$	1,148		$	889
Other comprehensive income (loss)	(14		)	10
Contributions from (distributions to) noncontrolling interests, net	120			(46		)
Other	13			(1		)
Net income (loss)	10			51
Balance, end of period	$	1,277		$	903
Total equity	$	82,783		$	75,862
Cash dividends declared per common share	$	0.23		$	0.21

See accompanying notes to condensed consolidated financial statements.

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Comcast Corporation

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1: Condensed Consolidated Financial Statements

Business and Basis of Presentation

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

The year-end condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”). For a more complete discussion of our accounting policies and certain other information, refer to our consolidated financial statements included in our 2019 Annual Report on Form 10-K and the notes within this Form 10-Q.

Note 2: Segment Information

We present our operations in six reportable business segments: (1) Comcast Cable in one reportable business segment, referred to as Cable Communications; (2) NBCUniversal in four reportable business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks (collectively, the “NBCUniversal segments”); and (3) Sky in one reportable business segment.

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

Theme Parks consists primarily of our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. In addition, we are developing a theme park in Beijing, China along with a consortium of Chinese state-owned companies, and an additional theme park in Orlando, Florida.

Sky is one of Europe’s leading entertainment companies, which primarily includes a direct-to-consumer business, providing video, high-speed internet, voice and wireless phone services, and a content business, operating entertainment networks, the Sky News broadcast network and Sky Sports networks.

Our other business interests consist primarily of the operations of Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania, and other business initiatives, such as the development of Peacock, our direct-to-consumer streaming service that will feature NBCUniversal content.

We use Adjusted EBITDA to evaluate the profitability of our operating segments and the components of net income attributable to Comcast Corporation excluded from Adjusted EBITDA are not separately evaluated. Our financial data by business segment is presented in the tables below.

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Comcast Corporation



	Three Months Ended March 31, 2020
(in millions)	Revenue			Adjusted EBITDA^(d)			Depreciation and Amortization		Capital Expenditures		Cash Paid for Intangible Assets
Cable Communications	$	14,918		$	6,076		$	1,946	$	1,269	$	356
NBCUniversal
Cable Networks	2,859			1,248			195		5		3
Broadcast Television	2,684			501			43		25		3
Filmed Entertainment	1,370			106			22		4		5
Theme Parks	869			76			189		296		15
Headquarters and Other^(a)	23			(187		)	116		47		41
Eliminations^(b)	(71		)	3			—		—		—
NBCUniversal	7,734			1,747			565		377		67
Sky	4,517			551			718		197		166
Corporate and Other^(c)	120			(252		)	35		38		29
Eliminations^(b)	(680		)	8			—		—		—
Comcast Consolidated	$	26,609		$	8,130		$	3,264	$	1,881	$	618



	Three Months Ended March 31, 2019
(in millions)	Revenue			Adjusted EBITDA^(d)			Depreciation and Amortization		Capital Expenditures		Cash Paid for Intangible Assets
Cable Communications	$	14,280		$	5,728		$	2,035	$	1,363	$	323
NBCUniversal
Cable Networks	2,868			1,262			182		6		2
Broadcast Television	2,467			387			39		13		3
Filmed Entertainment	1,768			364			19		4		5
Theme Parks	1,276			498			162		394		19
Headquarters and Other^(a)	17			(174		)	113		36		42
Eliminations^(b)	(83		)	—			—		—		—
NBCUniversal	8,313			2,337			515		453		71
Sky	4,797			663			741		259		151
Corporate and Other^(c)	108			(187		)	29		17		2
Eliminations^(b)	(639		)	12			—		—		—
Comcast Consolidated	$	26,859		$	8,553		$	3,320	$	2,092	$	547


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


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


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


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


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


•	Cable Networks and Broadcast Television generate revenue by selling advertising to Cable Communications


•	Filmed Entertainment and Broadcast Television generate revenue by licensing content to Cable Networks; for segment reporting, this revenue is recognized as the programming rights asset for the licensed content is amortized based on third-party revenue


•	Filmed Entertainment, Cable Networks and Broadcast Television generate revenue by licensing content to Sky; for segment reporting, this revenue is recognized as content is delivered and available for use by Sky


(c)	Corporate and Other activities include costs associated with overhead and personnel, revenue and expenses associated with our other business interests.

(d)

We use Adjusted EBITDA as the measure of profit or loss for our operating segments. Adjusted EBITDA is defined as net income attributable to Comcast Corporation before net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock, income tax expense, investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any. From time to time, we may exclude from Adjusted EBITDA the impact of certain events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated income before income taxes is presented in the table below.

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Comcast Corporation



	Three Months Ended March 31,
(in millions)	2020			2019
Adjusted EBITDA	$	8,130		$	8,553
Adjustment for Sky transaction-related costs	(14		)	(51		)
Depreciation	(2,107		)	(2,240		)
Amortization	(1,157		)	(1,080		)
Interest expense	(1,212		)	(1,150		)
Investment and other income (loss), net	(716		)	676
Income before income taxes	$	2,924		$	4,708

Note 3: Revenue



	Three Months Ended March 31,
(in millions)	2020			2019
Residential:
High-speed internet	$	5,001		$	4,577
Video	5,632			5,628
Voice	899			990
Wireless	343			225
Business services	2,043			1,891
Advertising	557			556
Other	443			413
Total Cable Communications^(a)	14,918			14,280

Distribution	1,708			1,735
Advertising	834			852
Content licensing and other	317			281
Total Cable Networks	2,859			2,868

Advertising	1,318			1,317
Content licensing	735			560
Distribution and other	631			590
Total Broadcast Television	2,684			2,467

Theatrical	317			445
Content licensing	691			817
Home entertainment	171			267
Other	191			239
Total Filmed Entertainment	1,370			1,768

Total Theme Parks	869			1,276
Headquarters and Other	23			17
Eliminations^(b)	(71		)	(83		)
Total NBCUniversal	7,734			8,313

Direct-to-consumer	3,679			3,834
Content	325			370
Advertising	513			593
Total Sky	4,517			4,797

Corporate and Other	120			108
Eliminations^(b)	(680		)	(639		)
Total revenue	$	26,609		$	26,859


(a)	For both the three months ended March 31, 2020 and 2019, 2.6% of Cable Communications segment revenue was derived from franchise and other regulatory fees.


(b)	Included in Eliminations are transactions that our segments enter into with one another. See Note 2 for a description of these transactions.

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Comcast Corporation

We operate primarily in the United States but also in select international markets. The table below summarizes revenue by geographic location.



	Three Months Ended March 31,
(in millions)	2020		2019
United States	$	20,690	$	20,457
Europe	5,033		5,370
Other	886		1,032
Total revenue	$	26,609	$	26,859

No single customer accounted for a significant amount of revenue in any period presented.

Condensed Consolidated Balance Sheet

The following tables summarize our accounts receivable and other balances that are not separately presented in our condensed consolidated balance sheet that relate to the recognition of revenue and collection of the related cash, as well as deferred costs associated with our contracts with customers.



(in millions)	March 31, 2020		December 31, 2019
Receivables, gross	$	11,412	$	11,711
Less: Allowance for doubtful accounts	612		419
Receivables, net	$	10,800	$	11,292



(in millions)	March 31, 2020		December 31, 2019
Noncurrent receivables, net (included in other noncurrent assets, net)	$	1,323	$	1,337
Contract acquisition and fulfillment costs (included in other noncurrent assets, net)	$	1,078	$	1,083
Noncurrent deferred revenue (included in other noncurrent liabilities)	$	894	$	618

Note 4: Programming and Production Costs

Film and Television Costs

Cable Networks, Broadcast Television, Filmed Entertainment and Sky produce owned content or acquire the rights to programming from third parties, which are described as owned film and television costs and programming rights, respectively. We adopted new accounting guidance related to film and television costs in 2020 (see Note 8), and accordingly amounts presented below for periods in 2020 and the policy discussion reflect the updated accounting guidance, and amounts presented for 2019 reflect the accounting guidance in effect at that time. Under the new accounting guidance, we have determined that the predominant monetization strategy for the substantial majority of our content is on an individual basis.

Amortization of Film and Television Costs



	Three Months Ended March 31,
(in millions)	2020
Owned film and television costs	$	1,788
Programming rights	$	2,664

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Capitalized Film and Television Costs



	March 31, 2020		December 31, 2019
(in millions)	Film and Television Costs		Film Costs		Television Costs		Total
Owned film and television costs:
Released, less amortization	$	4,317	$	1,551	$	2,810	$	4,361
Completed, not released	238		187		—		187
In production and in development	2,509		1,314		1,162		2,476
	7,064		3,052		3,972		7,024
Programming rights, less amortization	5,321						5,786
	12,385						12,810
Less: Current portion of programming rights	—						3,877
Film and television costs	$	12,385					$	8,933

The table below summarizes estimated future amortization expense for the capitalized film and television costs recorded in our condensed consolidated balance sheet as of March 31, 2020.



(in millions)	Owned Film and Television Costs		Programming Rights
Completed, not released:
Remaining nine months of 2020	$	119

Released and programming rights:
Remaining nine months of 2020	$	1,485	$	2,775
2021	$	672	$	1,197
2022	$	418	$	433

Capitalization and Recognition of Film and Television Costs

We capitalize costs for owned film and television content, including direct costs, production overhead, print costs, development costs and interest, as well as acquired libraries. Amortization for content predominantly monetized on an individual basis and accrued costs associated with participations and residual payments are recorded using the individual film forecast computation method, which recognizes the costs in the same ratio as the associated ultimate revenue. Estimates of ultimate revenue and total costs are based on anticipated release patterns, public acceptance and historical results for similar productions. Amortization for content predominantly monetized with other owned or licensed content is recorded based on estimated usage. In determining the method of amortization and estimated life of an acquired film or television library, we generally use the method and the life that most closely follow the undiscounted cash flows over the estimated life of the asset. We do not capitalize costs related to the distribution of a film in movie theaters or the licensing or sale of a film or television production, which primarily include costs associated with marketing and distribution.

We may enter into cofinancing arrangements with third parties to jointly finance or distribute certain of our film productions. Cofinancing arrangements can take various forms, but in most cases involve the grant of an economic interest in a film to an investor who owns an undivided copyright interest in the film. The number of investors and the terms of these arrangements can vary, although investors generally assume the full risks and rewards for the portion of the film acquired in these arrangements. We account for the proceeds received from the investor under these arrangements as a reduction of our capitalized film costs and the investor’s interest in the profit or loss of the film is recorded as either a charge or a benefit, respectively, in programming and production costs. The investor’s interest in the profit or loss of a film is recorded each period using the individual film forecast computation method.

We capitalize the costs of programming rights for content that we license but do not own when the license period begins, the content is made available for use and the costs of programming licenses are known. Programming rights are amortized as the associated programs are broadcast.

Owned film and television costs and programming rights are presented as noncurrent assets in film and television costs. We present amortization of film and television costs and accrued costs associated with participation and residual payments in programming and production costs.

When an event or a change in circumstance occurs that was known or knowable as of the balance sheet date and that indicates the fair value of either owned film and television content or programming rights is less than the unamortized costs in the balance sheet,

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we determine the fair value and record an impairment charge to the extent the unamortized costs exceed the fair value. Owned film and television costs are assessed either individually or in identified film groups, for content predominantly monetized on an individual basis or with other content, respectively. The substantial majority of our owned film and television costs are evaluated for impairment on an individual title basis. Programming rights that are not part of a film group are generally assessed in packages, channels, or dayparts. A daypart is an aggregation of programs broadcast during a particular time of day or programs of a similar type. Programming rights licensed by Cable Networks are primarily tested on a channel basis for impairment, whereas programming rights licensed by Broadcast Television are tested on a daypart basis. Estimated fair values of owned film and television costs or programming rights are generally based on level 3 inputs including analysis of market participant estimates of future cash flows. We record charges related to impairments or content that is substantively abandoned to programming and production costs. Impairments of capitalized film and television costs were not material in any of the periods presented.

Sports Programming Rights

We recognize the costs of multiyear, live-event sports programming rights as the rights are utilized over the contract term based on estimated relative value. Estimated relative value is generally based on the ratio of the current period revenue to the estimated ultimate revenue or the terms of the contract. When cash payments, including advanced payments, exceed the relative value of the programming delivered, we recognize an asset in programming rights. Production costs incurred in advance of airing are also presented in programming rights.

Note 5: Earnings Per Share

Computation of Diluted EPS



	Three Months Ended March 31,
	2020					2019
(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	$	2,147	4,562	$	0.47	$	3,553	4,534	$	0.78
Effect of dilutive securities:
Assumed exercise or issuance of shares relating to stock plans			55					60
Diluted EPS attributable to Comcast Corporation shareholders	$	2,147	4,617	$	0.46	$	3,553	4,594	$	0.77

Diluted earnings per common share attributable to Comcast Corporation shareholders (“diluted EPS”) considers the impact of potentially dilutive securities using the treasury stock method. Our potentially dilutive securities include potential common shares related to our stock options and our restricted share units (“RSUs”). Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the combination of the option exercise price and the associated unrecognized compensation expense is greater than the average market price of our common stock. The amount of potential common shares related to our share-based compensation plans that were excluded from diluted EPS because their effect would have been antidilutive was not material for the three months ended March 31, 2020 or 2019.

Note 6: Long-Term Debt

As of March 31, 2020, our debt had a carrying value of $103.6 billion and an estimated fair value of $118.8 billion. The estimated fair value of our publicly traded debt was primarily based on level 1 inputs that use quoted market value for the debt. The estimated fair value of debt for which there are no quoted market prices was based on level 2 inputs that use interest rates available to us for debt with similar terms and remaining maturities.

In April 2020, Sky repaid at maturity $655 million (using the exchange rate on the date of repayment) aggregate principal amount of senior floating rate notes due 2020.

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Note 7: Significant Transactions

Universal Beijing Resort

We entered into an agreement with a consortium of Chinese state-owned companies to build and operate a Universal theme park and resort in Beijing, China (“Universal Beijing Resort”). We own a 30% interest in Universal Beijing Resort and the construction is being funded through a combination of debt financing and equity contributions from the investors in accordance with their equity interests. As of March 31, 2020, Universal Beijing Resort had $1.5 billion principal amount of a term loan outstanding under the debt financing agreement.

As of March 31, 2020, our condensed consolidated balance sheet included assets, primarily property and equipment, and liabilities, including the term loan, of Universal Beijing Resort totaling $3.4 billion and $2.3 billion, respectively.

Note 8: Recent Accounting Pronouncements

Film and Television Costs

In March 2019, the Financial Accounting Standards Board (“FASB”) updated the accounting guidance related to film and television costs. The updated guidance aligned the accounting for production costs of episodic television series with those of films, allowing for costs to be capitalized in excess of amounts of revenue contracted for each episode. The guidance also updated certain presentation and disclosure requirements for capitalized film and television costs, and when content is predominantly monetized with other owned or licensed content the guidance requires impairment testing for capitalized film and television costs to be performed at a film group level and amortization to be based on usage. We adopted the updated guidance on January 1, 2020 on a prospective basis and as a result, prior period amounts were not adjusted.

Following the adoption, we now present all film and television costs, including acquired programming rights previously classified as current, as noncurrent in the condensed consolidated balance sheet. The adoption of the updated accounting guidance did not have a material impact on our consolidated results of operations or financial position. See Note 4 for further information.

Credit Losses

In June 2016, the FASB updated the accounting guidance related to the measurement of credit losses on financial instruments, including trade receivables and loans. The updated guidance requires the recognition of credit losses on financial instruments based on an estimate of expected losses, replacing the incurred loss model in the prior guidance. We adopted the updated guidance on January 1, 2020 on a prospective basis recording $124 million, net of tax, as a cumulative effect adjustment to retained earnings and as a result, prior period amounts were not adjusted. The adoption of the updated accounting guidance did not have a material impact on our consolidated results of operations or financial position for any periods presented.

Note 9: Investments

Investment and Other Income (Loss), Net



	Three Months Ended March 31,
(in millions)	2020			2019
Equity in net income (losses) of investees, net	$	(668	)	$	262
Realized and unrealized gains (losses) on equity securities, net	(58		)	214
Other income (loss), net	10			200
Investment and other income (loss), net	$	(716	)	$	676



(in millions)	March 31, 2020		December 31, 2019
Equity method	$	4,777	$	5,347
Marketable equity securities	320		353
Nonmarketable equity securities	1,892		1,896
Other investments	1,794		1,796
Total investments	8,783		9,392
Less: Current investments	1,703		1,709
Less: Investment securing collateralized obligation	612		694
Noncurrent investments	$	6,468	$	6,989

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Equity Method

Atairos

Atairos follows investment company accounting and records its investments at their fair values each reporting period with the net gains or losses reflected in its statement of operations. We recognize our share of these gains and losses in equity in net income (losses) of investees, net. For the three months ended March 31, 2020 and 2019, we recognized losses of $581 million and income of $374 million, respectively. For the three months ended March 31, 2020 and 2019, we made cash capital contributions totaling $12 million and $37 million, respectively, to Atairos. As of March 31, 2020 and December 31, 2019, our investment was $2.8 billion and $3.2 billion, respectively.

Hulu and Collateralized Obligation

For the three months ended March 31, 2020 and 2019, we recognized our proportionate share of Hulu’s losses of $82 million and $141 million, respectively, in equity in net income (losses) of investees, net and in the first quarter 2019, we recognized a previously deferred dilution gain of $159 million. For the three months ended March 31, 2019, we made cash capital contributions totaling $233 million to Hulu. There were no cash capital contributions made during the three months ended March 31, 2020. As of March 31, 2020 and December 31, 2019, our investment was $612 million and $694 million, respectively.

In 2019, we borrowed $5.2 billion under a term loan facility due March 2024 which is fully collateralized by the minimum guaranteed proceeds of the put/call option related to our investment in Hulu. As of March 31, 2020, the carrying value and fair value of our collateralized obligation was $5.2 billion. The estimated fair value was based on level 2 inputs that use interest rates for debt with similar terms and remaining maturities. We present our investment in Hulu and the term loan separately in our condensed consolidated balance sheet in the captions “investment securing collateralized obligation” and “collateralized obligation,” respectively. The recorded value of our investment reflects our historical cost in applying the equity method, and as a result, is less than its fair value.

Marketable Equity Securities

Peloton

Following Peloton’s initial public offering in September 2019, we present our investment in marketable equity securities, which was previously presented in nonmarketable equity securities. For the three months ended March 31, 2020, we recognized unrealized losses of $19 million in realized and unrealized gains (losses) on equity securities, net. As of March 31, 2020 and December 31, 2019, our investment in Peloton was $275 million and $294 million, respectively.

Snap

In the fourth quarter of 2019, we sold our investment in Snap. For the three months ended March 31, 2019, we recognized unrealized gains of $162 million in realized and unrealized gains (losses) on equity securities, net.

Other Investments

AirTouch

As of March 31, 2020 and December 31, 2019, our investment in the two series of preferred stock of Verizon Americas, Inc., formerly known as AirTouch Communications, Inc. (“AirTouch”) was $1.7 billion and $1.6 billion, respectively, and the associated liability related to redeemable subsidiary preferred shares was $1.7 billion as of both dates.

In April 2020, AirTouch redeemed the preferred stock and we received cash payments totaling $1.7 billion. Subsequently, we redeemed and repurchased the three series of subsidiary preferred stock and made cash payments totaling $1.8 billion.

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Note 10: Intangible Assets



		March 31, 2020					December 31, 2019
(in millions)	Weighted-Average Original Useful Life as of March 31, 2020	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Indefinite-Lived Intangible Assets:
Franchise rights	N/A	$	59,365				$	59,365
Trade names	N/A	—					8,809
FCC licenses	N/A	2,337					2,337
Finite-Lived Intangible Assets:
Customer relationships	14 years	21,236		$	(7,446	)	22,884		$	(8,295	)
Software	5 years	15,631		(7,742		)	15,357		(7,287		)
Other agreements and rights	28 years	11,760		(1,104		)	3,958		(1,635		)
Total		$	110,329	$	(16,292	)	$	112,710	$	(17,217	)

Estimated Amortization Expense of Finite-Lived Intangible Assets



(in millions)
Remaining nine months of 2020	$	3,381
2021	$	4,107
2022	$	3,539
2023	$	2,951
2024	$	2,451

Note 11: Supplemental Financial Information

Share-Based Compensation

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

In March 2020, we granted 15.8 million RSUs and 59.9 million stock options related to our annual management awards. The weighted-average fair values associated with these grants were $42.47 per RSU and $6.53 per stock option.

Recognized Share-Based Compensation Expense



	Three Months Ended March 31,
(in millions)	2020		2019
Restricted share units	$	141	$	127
Stock options	71		47
Employee stock purchase plans	12		9
Total	$	224	$	183

As of March 31, 2020, we had unrecognized pretax compensation expense of $1.6 billion and $760 million related to nonvested RSUs and nonvested stock options, respectively.

Cash Payments for Interest and Income Taxes



	Three Months Ended March 31,
(in millions)	2020		2019
Interest	$	991	$	970
Income taxes	$	281	$	189

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Noncash Activities

During the three months ended March 31, 2020:


•	we acquired $1.6 billion of property and equipment and intangible assets that were accrued but unpaid


•	we recorded a liability of $1.1 billion for a quarterly cash dividend of $0.23 per common share to be paid in April 2020

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the condensed consolidated balance sheet to the total of the amounts reported in our condensed consolidated statement of cash flows.



(in millions)	March 31, 2020		December 31, 2019
Cash and cash equivalents	$	8,516	$	5,500
Restricted cash included in other current assets	47		42
Restricted cash included in other noncurrent assets, net	46		47
Cash, cash equivalents and restricted cash, end of period	$	8,609	$	5,589

Accumulated Other Comprehensive Income (Loss)



(in millions)	March 31, 2020			March 31, 2019
Unrealized gains (losses) on marketable securities	$	7		$	4
Deferred gains (losses) on cash flow hedges	87			54
Unrecognized gains (losses) on employee benefit obligations	257			318
Cumulative translation adjustments	(1,495		)	46
Accumulated other comprehensive income (loss), net of deferred taxes	$	(1,144	)	$	422

Note 12: Commitments and Contingencies

Redeemable Subsidiary Preferred Stock

None of the holders of the Series A cumulative preferred stock of NBCUniversal Enterprise exercised their rights to cause NBCUniversal Enterprise to redeem their shares during the first 30 day election period beginning on March 19, 2020. As of March 31, 2020, the fair value of the NBCUniversal Enterprise redeemable subsidiary preferred stock was $734 million. The estimated fair value is based on level 2 inputs that use pricing models whose inputs are derived primarily from or corroborated by observable market data through correlation or other means for substantially the full term of the financial instrument.

Contingencies

We are subject to legal proceedings and claims that arise in the ordinary course of our business. While the amount of ultimate liability with respect to such actions is not expected to materially affect our results of operations, cash flows or financial position, any litigation resulting from any such legal proceedings or claims could be time-consuming and injure our reputation.

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

Overview

We are a global media and technology company with three primary businesses: Comcast Cable, NBCUniversal, and Sky. We present our operations for (1) Comcast Cable in one reportable business segment, referred to as Cable Communications; (2) NBCUniversal in four reportable business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks (collectively, the “NBCUniversal segments”); and (3) Sky in one reportable business segment.

Cable Communications Segment

Cable Communications is a leading provider of high-speed internet, video, voice, wireless, and security and automation services to residential customers under the Xfinity brand; we also provide these and other services to business customers and sell advertising. As of March 31, 2020, our cable systems had 31.9 million total customer relationships, including 29.5 million residential and 2.4 million business customer relationships, and passed more than 59 million homes and businesses. Revenue is generated primarily from residential and business customers that subscribe to our services, which are marketed individually and as bundled services, and from the sale of advertising.

NBCUniversal Segments

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

Cable Networks

Cable Networks consists primarily of our national cable networks that provide a variety of entertainment, news and information, and sports content; our regional sports and news networks; our international cable networks; our cable television studio production operations; and various digital properties. Revenue is generated primarily from the distribution of our cable network programming to traditional and virtual multichannel video providers; from the sale of advertising on our cable networks and digital properties; from the licensing of our owned programming, including programming from our cable television studio production operations, to cable and broadcast networks and subscription video on demand services; and from the sale of our owned content on standard-definition DVDs and Blu-ray discs (together, “DVDs”) and through digital distribution services such as iTunes.

Broadcast Television

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

Filmed Entertainment

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

Theme Parks

Sky Segment

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Corporate and Other

Impacts of COVID-19

The novel coronavirus disease 2019 (“COVID-19”) and measures taken to prevent its spread across the globe are impacting our businesses in a number of ways. Our Cable Communications results of operations, while strong in the first quarter 2020, will be negatively affected in the second quarter by the significant deterioration in domestic economic conditions in recent weeks and by the costs associated with our support of customer connectivity as the population increasingly works and learns remotely from home. NBCUniversal and Sky results of operations also will be negatively impacted to a greater extent in the second quarter 2020. As a result, we expect the impacts of COVID-19 to increase in significance in the second quarter 2020 and to have a material adverse impact on our consolidated results of operations over the near to medium term.

Cable Communications


•	Our distribution network to date has performed well under the stress of increased traffic and peak usage driven by increased video streaming, gaming and videoconferencing as more customers work and learn remotely from home.

•

We have incurred, and expect to continue to incur in the second quarter of 2020, costs associated with compensating personnel in roles affected by COVID-19. These costs include additional compensation for frontline personnel working to keep our customers connected to our services, and compensation for certain personnel in roles who have been unable to work due to the closing or suspension of operations.

•

We have pledged from mid-March 2020 through the end of June 2020 that new qualifying customers for Internet Essentials, our low-income internet adoption program, are entitled to receive 60 days of free internet services and not to disconnect internet, voice or wireless service for customers for nonpayment. As a result, our customer metrics for the first quarter of 2020 do not include customers connected through the Internet Essentials offer or certain high-risk customers who continue to receive services following nonpayment.

•

The deteriorating economic conditions and increased economic uncertainty resulting from COVID-19 may result in reduced demand for our residential and business services and have had, and likely will continue to have, negative impacts on our advertising revenue. In addition, we believe there is increased risk associated with collections on our outstanding receivables, and we have incurred, and expect to continue to incur, losses in our allowance for doubtful accounts.

NBCUniversal

•

The temporary closure of all of our theme parks in the first quarter of 2020 had the most significant impact on our revenue and Adjusted EBITDA for the three months ended March 31, 2020 on a consolidated basis. We cannot predict the timing of when the parks will reopen or the level of attendance when they do reopen. In addition, although we currently expect that Universal Beijing Resort will open in 2021, certain construction projects, including the development of the Epic Universe theme park in Orlando, will be delayed.


•	While the deteriorating economic conditions caused by COVID-19 had a limited negative impact on our Cable Networks and Broadcast Television revenue in the first quarter of 2020, we expect significant reductions in advertising spend for the remainder of 2020 and reduced consumer spending generally may cause increased losses in subscribers to our networks.


•	We have incurred, and expect to continue to incur in the second quarter of 2020, costs associated with compensating personnel who have been unable to work due to the closing or suspension of operations, including at our theme parks and at our production studios.

•

Sporting events and professional sports seasons have been postponed, which have impacted our first quarter 2020 results of operations, since both advertising revenues and costs associated with broadcasting these programs were not recognized. The timing of when, or the extent to which, these events will occur in 2020 is unclear; their broadcast is expected to impact the timing, and potentially the amount, of revenue and expense recognition. In addition, the 2020 Tokyo Olympics have been postponed from the third quarter of 2020 to the third quarter of 2021 which will result in a corresponding delay of the associated revenue and costs.


•	The creation and availability of our film and television programming in the United States and globally have been disrupted, including from the suspension of studio production operations. Additionally, with many movie theaters being closed worldwide, we have delayed or altered the theatrical distribution strategy for certain of our films, both domestically and internationally.

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Sky

•

Sporting events and professional sports seasons, including European soccer, have been postponed, which had significant impacts on Sky’s results of operations in the first quarter of 2020. Direct-to-consumer revenue has been, and will continue to be, negatively impacted as a result of lower sports subscription revenue. Additionally, significant costs associated with broadcasting these programs were not recognized as a result of sporting events not occurring in March of 2020. The timing of when, or the extent to which, these events will occur in 2020 is unclear; their broadcast is expected to impact the timing, and potentially the amount, of revenue and expense recognition.


•	We have suspended certain sales channels due to COVID-19, which has and will continue to impact our net customer additions and revenue.

•

COVID-19 has resulted in deteriorating economic conditions and increased economic uncertainty in the U.K. and Europe, intensifying what was an already deteriorating economic and advertising environment in 2019. These conditions negatively impacted revenue in the first quarter of 2020, and we expect these conditions will reduce advertising spend and consumer demand for our services for the remainder of 2020. In addition, there is increased risk associated with collections on our outstanding receivables, and we have incurred and expect to continue to incur losses in our allowance for doubtful accounts.

Global financial markets have been volatile and have experienced significant declines, and domestic and global economic conditions are showing signs of material weakness. At this point, it is impossible to predict the extent and duration of these and any other impacts of COVID-19 to our businesses, or the degree to which demand for our products and services, or supply of key inputs to those products and services, will be affected. This uncertainty makes it challenging for management to estimate with precision the future performance of our businesses.

As of March 31, 2020, we evaluated whether the facts and circumstances and available information result in the need for an impairment assessment for any of our long-lived assets, including goodwill, and concluded no assessment was required. We will continue to evaluate the impacts of COVID-19 to our businesses, including the impacts of overall economic conditions, which could result in the recognition of an impairment charge in the future. Our first quarter 2020 results were impacted by significant losses as a result of declines in market values for publicly traded equity securities underlying our investments.

Liquidity

Although negatively impacted by COVID-19 impacts, we expect that our businesses will continue to generate significant cash flow from operating activities and we believe that these cash flows, together with our existing cash, cash equivalents and investments, available borrowings under our existing credit facilities, and our ability to obtain future external financing, will be sufficient for us to meet our current and long-term liquidity and capital requirements. However, we expect the timing of certain priorities to be impacted, such as the pace of our debt reduction efforts and the delay of certain capital projects.

Competition

All of our businesses operate in intensely competitive, consumer-driven and rapidly changing environments and compete with a growing number of companies that provide a broad range of communications products and services, and entertainment, news and information content to consumers. Technological changes are further intensifying and complicating the competitive landscape and challenging existing business models. In particular, consumers are increasingly turning to online sources for viewing and purchasing content, which has and likely will continue to reduce the number of our video customers and subscribers to our cable networks even as it makes our high-speed internet services more valuable to consumers. In addition, the increasing number of entertainment choices available to consumers has intensified audience fragmentation and disaggregated the way that content traditionally has been viewed by consumers. This increase has caused and likely will continue to cause audience ratings declines at our programming channels.

For additional information on the competition our businesses face, see our 2019 Annual Report on Form 10-K and refer to Item 1: Business and Item 1A: Risk Factors. Within the Business section, refer to the “Competition” discussion, and within the Risk Factors section, refer to the risk factors entitled “Our businesses operate in highly competitive and dynamic industries, and our businesses and results of operations could be adversely affected if we do not compete effectively” and “Changes in consumer behavior driven by online video distribution platforms for viewing content continue to adversely affect our businesses and challenge existing business models.”

Seasonality and Cyclicality

Each of our businesses is subject to seasonal and cyclical variations. Cable Communications’ results are impacted by the seasonal nature of residential customers receiving our services in college and vacation markets. This generally results in fewer net customer relationship additions in the second quarter of each year.

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Revenue and operating costs and expenses (comprised of total costs and expenses, excluding depreciation and amortization expense and other operating gains) are cyclical as a result of our periodic broadcasts of major sporting events, such as the Olympic Games, which affect Cable Networks and Broadcast Television, and the Super Bowl, which affects Broadcast Television. In particular, advertising revenue increases due to increased demand for advertising time for these events and distribution revenue increases in the period of broadcasts of the Olympic Games. Operating costs and expenses also increase as a result of our production costs for these broadcasts and the amortization of the related rights fees.

Revenue in Cable Communications, Cable Networks, Broadcast Television and Sky is also subject to cyclical advertising patterns and changes in viewership levels. Advertising revenue in the U.S. is generally higher in the second and fourth quarters of each year and in even-numbered years due to increases in consumer advertising in the spring and in the period leading up to and including the holiday season and advertising related to candidates running for political office and issue-oriented advertising, respectively. Revenue in Cable Networks and Broadcast Television fluctuates depending on the timing of when our programming is aired, which typically results in higher advertising revenue in the second and fourth quarters of each year. Revenue at Sky has seasonally higher audience levels in winter months and increased competition during major sporting events where public service broadcasters lease the rights, such as the Olympic Games and the FIFA World Cup^TM.

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

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

Sky’s results are impacted by the seasonal nature of residential customers receiving direct-to-home (“DTH”) and over the top (“OTT”) video services, including the start of the new soccer seasons and the Christmas holiday. This generally results in greater net customer relationship additions and higher subscriber acquisition costs in the second half of each year due to higher marketing expenses.

Exclusive sports rights, such as local European and Union des Associations Européennes de Football Champions League (“UCL”) soccer, Formula 1, and English cricket, play a key role within Sky’s wider content strategy. In Europe, broadcasting rights for major sports are usually tendered through a competitive auction process, with the winning bidder or bidders acquiring rights over a three to five-year period. This creates some level of cyclicality for Sky, although the staggered timing of major sports rights auctions usually gives Sky time to react to any material changes in the competitive dynamics of the prevailing market. Certain of Sky’s significant sports rights agreements require payments at the start of each season, resulting in increases in sports rights payments in the third and fourth quarter of each year.

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Consolidated Operating Results



	Three Months Ended March 31,						Increase/ (Decrease)
(in millions, except per share data)	2020			2019			%
Revenue	$	26,609		$	26,859		(0.9	)%
Costs and Expenses:
Programming and production	8,301			8,569			(3.1	)
Other operating and administrative	8,254			7,900			4.5
Advertising, marketing and promotion	1,938			1,888			2.6
Depreciation	2,107			2,240			(5.9	)
Amortization	1,157			1,080			7.1
Operating income	4,852			5,182			(6.4	)
Interest expense	(1,212		)	(1,150		)	5.4
Investment and other income (loss), net	(716		)	676			(205.7	)
Income before income taxes	2,924			4,708			(37.9	)
Income tax expense	(700		)	(1,076		)	(35.0	)
Net income	2,224			3,632			(38.8	)
Less: Net income attributable to noncontrolling interests and redeemable subsidiary preferred stock	77			79			(2.0	)
Net income attributable to Comcast Corporation	$	2,147		$	3,553		(39.6	)%
Basic earnings per common share attributable to Comcast Corporation shareholders	$	0.47		$	0.78		(39.7	)%
Diluted earnings per common share attributable to Comcast Corporation shareholders	$	0.46		$	0.77		(40.3	)%

Adjusted EBITDA^(a)	$	8,130		$	8,553		(4.9	)%

All percentages are calculated based on actual amounts. Minor differences may exist due to rounding. Percentage changes that are considered not meaningful are denoted with NM.


(a)	Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section on page 30 for additional information, including our definition and our use of Adjusted EBITDA, and for a reconciliation from net income attributable to Comcast Corporation to Adjusted EBITDA.

Consolidated Revenue

Theme Parks, Filmed Entertainment, Sky and Cable Networks drove decreases in consolidated revenue for the three months ended March 31, 2020, which were offset by increases in revenue in Cable Communications and Broadcast Television.

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

Consolidated Costs and Expenses

Cable Communications, Broadcast Television, Theme Parks and Cable Networks drove increases in consolidated operating costs and expenses for the three months ended March 31, 2020, which were partially offset by decreases in operating costs and expenses in Sky and Filmed Entertainment.

Operating costs and expenses for our segments and our corporate operations, businesses development initiatives and other businesses are discussed separately below under the heading “Segment Operating Results.”

Consolidated Depreciation and Amortization Expense



	Three Months Ended March 31,				Increase/ (Decrease)
(in millions)	2020		2019		%
Cable Communications	$	1,946	$	2,035	(4.3	)%
NBCUniversal	565		515		9.8
Sky	718		741		(3.1	)
Corporate and Other	35		29		23.0
Comcast Consolidated	$	3,264	$	3,320	(1.7	)%

Consolidated depreciation and amortization expense decreased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to a decrease in depreciation at Cable Communications related to a reduction in capital expenditures on customer premise equipment, partially offset by an increase in the amortization of certain trade names beginning in the first

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quarter of 2020, which were previously accounted for as indefinite-lived intangible assets (see Note 10). During the first quarter of 2019, we recorded adjustments to the purchase price allocation of Sky, primarily related to intangible assets and property and equipment. This change resulted in an adjustment recorded in the first quarter of 2019 related to the fourth quarter of 2018 that increased depreciation and amortization expense by $53 million.

Amortization expense from acquisition-related intangible assets, such as customer relationships, totaled $575 million and $504 million for the three months ended March 31, 2020 and 2019, respectively. Amounts primarily relate to customer relationship intangible assets recorded in connection with the Sky transaction in the fourth quarter of 2018 and the NBCUniversal transaction in 2011.

Consolidated Interest Expense

Interest expense increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to a $140 million charge in the current period related to the early redemption of senior notes due 2021, partially offset by decreases in our debt outstanding.

Consolidated Investment and Other Income (Loss), Net



	Three Months Ended March 31,
(in millions)	2020			2019
Equity in net income (losses) of investees, net	$	(668	)	$	262
Realized and unrealized gains (losses) on equity securities, net	(58		)	214
Other income (loss), net	10			200
Total investment and other income (loss), net	$	(716	)	$	676

Equity in Net Income (Losses) of Investees, Net

The change in equity in net income (losses) of investees, net for the three months ended March 31, 2020 compared to the same period in 2019 was primarily due to our equity method investments in Atairos and Hulu. The income (losses) at Atairos were driven by fair value adjustments on its underlying investments. The equity in net income (losses) of Atairos and Hulu for the three months ended March 31, 2020 and 2019 are presented in the table below.



	Three Months Ended March 31,
(in millions)	2020			2019
Atairos	$	(581	)	$	374
Hulu	$	(82	)	$	(141	)

Realized and Unrealized Gains (Losses) on Equity Securities, Net

The change in realized and unrealized gains (losses) on equity securities, net for the three months ended March 31, 2020 compared to the same period in 2019 was primarily due to investment losses in the first quarter of 2020, compared to gains of $162 million recorded in the prior year period related to our interest in Snap, which was sold in the fourth quarter of 2019.

Other Income (Loss), Net

The change in other income (loss), net for the three months ended March 31, 2020 compared to the same period in 2019 was primarily due to a gain of $159 million recorded in the prior year period related to the dilution of our Hulu ownership. See Note 9.

Consolidated Income Tax Expense

Income tax expense for the three months ended March 31, 2020 and 2019 reflects an effective income tax rate that differs from the federal statutory rate primarily due to state and foreign income taxes and adjustments associated with uncertain tax positions. The decrease in income tax expense for the three months ended March 31, 2020 compared to the same period in 2019 was primarily due to lower income before income taxes.

Segment Operating Results

Our segment operating results are presented based on how we assess operating performance and internally report financial information. We use Adjusted EBITDA as the measure of profit or loss for our operating segments. See Note 2 for our definition of Adjusted EBITDA and a reconciliation from the aggregate amount of Adjusted EBITDA for our reportable business segments to consolidated income before income taxes.

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Cable Communications Segment Results of Operations



	Three Months Ended March 31,				Increase/ (Decrease)
(in millions)	2020		2019		$			%
Revenue
Residential:
High-speed internet	$	5,001	$	4,577	$	424		9.3	%
Video	5,632		5,628		4			0.1
Voice	899		990		(91		)	(9.2	)
Wireless	343		225		118			52.1
Business services	2,043		1,891		152			8.0
Advertising	557		556		1			0.3
Other	443		413		30			7.0
Total revenue	14,918		14,280		638			4.5
Operating costs and expenses
Programming	3,479		3,419		60			1.7
Technical and product support	2,012		1,880		132			7.0
Customer service	637		625		12			1.9
Advertising, marketing and promotion	954		972		(18		)	(1.9	)
Franchise and other regulatory fees	406		391		15			3.8
Other	1,354		1,265		89			7.1
Total operating costs and expenses	8,842		8,552		290			3.4
Adjusted EBITDA	$	6,076	$	5,728	$	348		6.1	%

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Customer Metrics



			Net Additions
	March 31,		Three Months Ended March 31,
(in thousands)	2020	2019	2020		2019
Customer relationships
Residential customer relationships	29,509	28,385	360		276
Business services customer relationships	2,408	2,327	11		25
Total customer relationships	31,917	30,712	371		300
Residential customer relationships mix
One product customers	10,801	9,295	554		280
Two product customers	8,848	9,009	(75	)	17
Three or more product customers	9,860	10,081	(119	)	(22	)
High-speed internet
Residential customers	26,880	25,449	466		352
Business services customers	2,226	2,148	11		23
Total high-speed internet customers	29,106	27,598	477		375
Video
Residential customers	19,900	20,852	(388	)	(107	)
Business services customers	944	1,014	(22	)	(14	)
Total video customers	20,845	21,865	(409	)	(121	)
Voice
Residential customers	9,840	10,089	(94	)	(63	)
Business services customers	1,347	1,307	5		10
Total voice customers	11,187	11,396	(89	)	(53	)
Wireless
Wireless lines	2,267	1,405	216		170

Customer metrics are presented based on actual amounts. Minor differences may exist due to rounding. Customer relationships represent the number of residential and business customers that subscribe to at least one of our services. One product, two product, and three or more product customers represent residential customers that subscribe to one, two, or three or more of our services, respectively. For multiple dwelling units (“MDUs”), including buildings located on college campuses, whose residents have the ability to receive additional services, such as additional programming choices or our high-definition video (“HD”) or digital video recorder (“DVR”) services, we count and report customers based on the number of potential billable relationships within each MDU. For MDUs whose residents are not able to receive additional services, the MDU is counted as a single customer. Residential high-speed internet and video customers as of March 31, 2020 included prepaid customers totaling approximately 246,000 and 9,000, respectively. Wireless lines represent the number of activated eligible wireless devices on customers’ accounts. Individual customer relationships may have multiple wireless lines. Customer metrics for the first quarter of 2020 do not include customers connected through a new free Internet Essentials offer or high-risk customers who continue to receive services following nonpayment (refer to “Impacts of COVID-19” for further discussion).



	Three Months Ended March 31,
	2020		2019
Average monthly total revenue per customer relationship	$	156.71	$	155.75
Average monthly Adjusted EBITDA per customer relationship	$	63.83	$	62.48

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

Cable Communications Segment – Revenue

High-Speed Internet

Revenue increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to an increase in the number of residential high-speed internet customers. The remaining increase in revenue was due to an increase in average rates.

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Video

Revenue was flat for the three months ended March 31, 2020 compared to the same period in 2019 due to an increase in average rates, offset by a decline in the number of residential video customers.

We have experienced, and expect that we will continue to experience, declines in the number of residential video customers due to competitive pressures, and we expect that our video revenue will continue to decline as a result of the competitive environment and shifting video consumption patterns. We believe our X1 platform helps us compete more effectively against this competition, and have also continued to employ sales and marketing programs, such as promotions, bundled service offerings and service offerings targeted at specific market segments.

Voice

Revenue decreased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to decreases in average rates and the number of residential voice customers. We expect that the number of residential voice customers and voice revenue will continue to decline.

Wireless

Revenue increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to an increase in the number of customer lines.

Business Services

Revenue increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to an increase in average rates and an increase in the number of customers receiving our services.

Advertising

Revenue was flat for the three months ended March 31, 2020 compared to the same period in 2019 as increases in political advertising were offset by reduced spending from advertisers due to COVID-19. We expect reduced spending from advertisers over the near to medium term as a result of deteriorating economic conditions resulting from COVID-19.

For both the three months ended March 31, 2020 and 2019, 5% of our advertising revenue was generated from our NBCUniversal segments. These amounts are eliminated in our condensed consolidated financial statements but are included in the amounts presented above.

Other

Revenue increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to increases in revenue from our security and automation services and from the licensing of our technology platforms to other multichannel video providers.

Cable Communications Segment – Operating Costs and Expenses

Programming expenses increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to an increase in retransmission consent and sports programming fees, partially offset by a decline in the number of video subscribers. We anticipate that our programming expenses will increase at rates higher than those experienced in 2019, due to the timing of contract renewals in 2020.

Technical and product support expenses increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to increased costs associated with our wireless phone service and additional compensation costs for certain personnel as a result of COVID-19.

Customer service expenses increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to an increase in costs as a result of opening new Xfinity stores, partially offset by lower labor costs as a result of reduced call volumes.

Advertising, marketing and promotion expenses decreased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to a decrease in spending.

Franchise and other regulatory fees increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to an increase in the related rates of these fees and an increase in the revenue to which the fees apply.

Other operating costs and expenses increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to an increase in the allowance for doubtful accounts as a result of COVID-19 and an increase in administrative expenses.

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Cable Communications Segment – Operating Margin

Our operating margin is Adjusted EBITDA as a percentage of revenue. We believe this metric is useful particularly as we continue to focus on growing our higher-margin businesses, including residential high-speed internet and business services, and on reducing losses related to our wireless phone service and improving overall operating cost management.

Our operating margin for the three months ended March 31, 2020 and 2019 was 40.7% and 40.1%, respectively. The most significant operating costs and expenses are the programming expenses we incur to provide content to our video customers, which increased 1.7% for the three months ended March 31, 2020 compared to the same period in 2019. Losses from our wireless phone service were $59 million in the current year period compared to losses of $103 million in the prior year period.

NBCUniversal Segments Results of Operations



	Three Months Ended March 31,						Increase/ (Decrease)
(in millions)	2020			2019			$			%
Revenue
Cable Networks	$	2,859		$	2,868		$	(9	)	(0.3	)%
Broadcast Television	2,684			2,467			217			8.8
Filmed Entertainment	1,370			1,768			(398		)	(22.5	)
Theme Parks	869			1,276			(407		)	(31.9	)
Headquarters, other and eliminations	(48		)	(66		)	18			NM
Total revenue	$	7,734		$	8,313		$	(579	)	(7.0	)%
Adjusted EBITDA
Cable Networks	$	1,248		$	1,262		$	(14	)	(1.2	)%
Broadcast Television	501			387			114			29.6
Filmed Entertainment	106			364			(258		)	(70.9	)
Theme Parks	76			498			(422		)	(84.7	)
Headquarters, other and eliminations	(184		)	(174		)	(10		)	NM
Total Adjusted EBITDA	$	1,747		$	2,337		$	(590	)	(25.3	)%

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

Cable Networks Segment Results of Operations



	Three Months Ended March 31,				Increase/ (Decrease)
(in millions)	2020		2019		$			%
Revenue
Distribution	$	1,708	$	1,735	$	(27	)	(1.5	)%
Advertising	834		852		(18		)	(2.2	)
Content licensing and other	317		281		36			13.0
Total revenue	2,859		2,868		(9		)	(0.3	)
Operating costs and expenses
Programming and production	1,118		1,143		(25		)	(2.1	)
Other operating and administrative	386		359		27			7.8
Advertising, marketing and promotion	107		104		3			2.6
Total operating costs and expenses	1,611		1,606		5			0.4
Adjusted EBITDA	$	1,248	$	1,262	$	(14	)	(1.2	)%

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Cable Networks Segment – Revenue

Cable Networks revenue remained flat for the three months ended March 31, 2020 compared to the same period in 2019 as decreases in distribution revenue and advertising revenue were offset by increases in content licensing and other revenue. The decrease in distribution revenue was primarily due to increased declines in the number of subscribers at our cable networks, partially offset by increases in the contractual rates charged under distribution agreements and the timing of contract renewals. Advertising revenue decreased compared to the same period in 2019 primarily due to audience ratings declines at our networks and reduced spending from advertisers resulting from professional sports leagues postponing events due to COVID-19, which was partially offset by higher prices for advertising units sold. We expect reduced spending from advertisers over the near to medium term as a result of deteriorating economic conditions due to COVID-19. The increase in content licensing and other revenue was due to the timing of content provided under our licensing agreements and revenue from our digital properties.

For both the three months ended March 31, 2020 and 2019, 15% of our Cable Networks segment revenue was generated from our Cable Communications segment. These amounts are eliminated in our condensed consolidated financial statements but are included in the amounts presented above.

Cable Networks Segment – Operating Costs and Expenses

Operating costs and expenses remained flat for the three months ended March 31, 2020 compared to the same period in 2019 as increases in other operating and administrative costs were offset by decreases in programming and production costs. The increase in other operating and administrative costs was primarily due to our digital properties and employee-related costs. The decrease in programming and production costs was primarily due to decreases in the recognition of sports programming costs as a result of professional sports leagues postponing events as a result of COVID-19, partially offset by increases in other programming costs at our networks.

Broadcast Television Segment Results of Operations



	Three Months Ended March 31,				Increase/ (Decrease)
(in millions)	2020		2019		$			%
Revenue
Advertising	$	1,318	$	1,317	$	1		0.1	%
Content licensing	735		560		175			31.3
Distribution and other	631		590		41			6.9
Total revenue	2,684		2,467		217			8.8
Operating costs and expenses
Programming and production	1,652		1,577		75			4.8
Other operating and administrative	411		382		29			7.6
Advertising, marketing and promotion	120		121		(1		)	(1.1	)
Total operating costs and expenses	2,183		2,080		103			4.9
Adjusted EBITDA	$	501	$	387	$	114		29.6	%

Broadcast Television Segment – Revenue

Broadcast Television revenue increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to increases in content licensing revenue and distribution and other revenue. The increase in content licensing revenue was primarily due to the timing of content provided under our licensing agreements. The increase in distribution and other revenue was primarily due to increases in fees recognized under our retransmission consent agreements. Advertising revenue was flat for the three months ended March 31, 2020 compared to the same period in 2019 as higher prices for advertising units sold and increased political advertising were offset by continued declines in audience ratings and reduced spending from advertisers due to COVID-19. We expect reduced spending from advertisers over the near to medium term as a result of deteriorating economic conditions resulting from COVID-19.

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Broadcast Television Segment – Operating Costs and Expenses

Operating costs and expenses increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to increases in programming and production costs and other operating and administrative costs. The increase in programming and production costs was primarily due to increases in costs related to original and acquired programming and higher studio production costs. These increases were partially offset by the impact of the adoption of updated accounting guidance in the first quarter of 2020, which removed certain limitations on the amounts capitalized for episodic television series and had a favorable impact on programming and production expense in the current period (see Note 8). The increase in other operating and administrative costs and expenses was primarily due to additional personnel costs.

Filmed Entertainment Segment Results of Operations



	Three Months Ended March 31,				Increase/ (Decrease)
(in millions)	2020		2019		$			%
Revenue
Theatrical	$	317	$	445	$	(128	)	(28.8	)%
Content licensing	691		817		(126		)	(15.4	)
Home entertainment	171		267		(96		)	(35.8	)
Other	191		239		(48		)	(20.3	)
Total revenue	1,370		1,768		(398		)	(22.5	)
Operating costs and expenses
Programming and production	608		733		(125		)	(17.1	)
Other operating and administrative	264		261		3			1.1
Advertising, marketing and promotion	392		410		(18		)	(4.4	)
Total operating costs and expenses	1,264		1,404		(140		)	(10.0	)
Adjusted EBITDA	$	106	$	364	$	(258	)	(70.9	)%

Filmed Entertainment Segment – Revenue

Filmed Entertainment revenue decreased for the three months ended March 31, 2020 compared to the same period in 2019 due to decreases in theatrical revenue, content licensing revenue, home entertainment revenue and other revenue. The decrease in theatrical revenue was primarily due to strong performances of films in the prior year period, including How to Train Your Dragon: The Hidden World, Us and Glass, partially offset by the performances of films in the current year period, including 1917, Dolittle, The Invisible Man and The Photograph. Films released late in the first quarter of 2020 were negatively impacted by theater closures as a result of COVID-19. The decrease in content licensing revenue was primarily due to the timing of when content was made available under licensing agreements, partially offset by the impacts of making certain 2020 releases available on demand after theater closures due to COVID-19, including The Invisible Man, Emma. and The Hunt. The decrease in home entertainment revenue was primarily due to higher sales of 2019 releases, including Dr. Seuss’ The Grinch, Halloween and Night School compared to the sales of 2020 releases, including 1917 and Downton Abbey and continued sales of Fast and Furious Presents: Hobbs and Shaw. The decrease in other revenue was primarily due to decreases in revenue from our live stage play and movie ticketing and entertainment businesses, which were impacted by theater and entertainment venue closures as a result of COVID-19. Filmed Entertainment revenue is expected to continue to be negatively impacted over the near to medium term as a result of COVID-19.

Filmed Entertainment Segment – Operating Costs and Expenses

Operating costs and expenses decreased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to decreases in programming and production costs and advertising, marketing and promotion costs. The decrease in programming and production costs was primarily due to higher amortization of film production costs in the prior year period. The decrease in advertising, marketing and promotion costs was due to higher spending on the marketing of prior year period releases and lower spending in the current period.

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Theme Parks Segment Results of Operations



	Three Months Ended March 31,				Increase/ (Decrease)
(in millions)	2020		2019		$			%
Revenue	$	869	$	1,276	$	(407	)	(31.9	)%
Operating costs and expenses	793		778		15			1.8
Adjusted EBITDA	$	76	$	498	$	(422	)	(84.7	)%

Theme Parks Segment – Revenue

Theme Parks revenue decreased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to the closures of our theme park in Japan in late February and our theme parks in Orlando and Hollywood in mid-March as a result of COVID-19. Theme Parks results of operations will continue to be negatively impacted in the near term and the extent of the impacts will depend on when the parks reopen and the level of attendance when they do reopen.

Theme Parks Segment – Operating Costs and Expenses

Theme Parks operating costs and expenses increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to increases in employee-related costs, which included continued compensation during park closures, and pre-opening costs associated with Universal Beijing Resort and Super Nintendo World^TM in Universal Japan, partially offset by lower costs relating to park operations due to the park closures.

Sky Segment Results of Operations



	Three Months Ended March 31,				Increase/ (Decrease)					Constant Currency Growth^(a)
(in millions)	2020		2019		$			%		%
Revenue
Direct-to-consumer	$	3,679	$	3,834	$	(155	)	(4.0	)%	(1.9	)%
Content	325		370		(45		)	(12.3	)	(10.5	)
Advertising	513		593		(80		)	(13.5	)	(11.6	)
Total revenue	4,517		4,797		(280		)	(5.8	)	(3.7	)
Operating costs and expenses
Programming and production	2,064		2,301		(237		)	(10.3	)	(8.2	)
Direct network costs	457		385		72			18.7		20.9
Other	1,445		1,448		(3		)	(0.1	)	2.1
Total operating costs and expenses	3,966		4,134		(168		)	(4.1	)	(1.9	)
Adjusted EBITDA	$	551	$	663	$	(112	)	(16.9	)%	(15.3	)%

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


(a)	Constant currency growth is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section on page 30 for additional information, including our definition and our use of constant currency, and for a reconciliation of Sky’s constant currency growth rates.

Customer Metrics



			Net Additions
	March 31,		Three Months Ended March 31,
(in thousands)	2020	2019	2020		2019
Total customer relationships	23,930	23,712	(65	)	112

Sky customer relationships represent the number of residential retail customers that subscribe to at least one of Sky’s four primary services of video, high-speed internet, voice and wireless phone service. Commercial retail customers include hotels, bars, workplaces and restaurants with an active subscription for the purpose of providing Sky services to customers. Sky reports commercial customers based on the number of commercial agreements per venue in the U.K., a residential equivalent unit based upon the multiple of residential customer revenue in Italy and the number of active venues (bars and restaurants) or rooms (hotels and clinics) in Germany.

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	March 31,				Increase/ (Decrease)					Constant Currency Growth^(a)
	2020		2019		$			%		%
Average monthly direct-to-consumer revenue per customer relationship	$	51.19	$	54.03	$	(2.84	)	(5.3	)%	(3.1	)%


(a)	Constant currency growth is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section on page 30 for additional information, including our definition and our use of constant currency, and for a reconciliation of Sky’s constant currency growth rates.

Average monthly direct-to-consumer revenue per customer relationship is impacted by rate adjustments and changes in the types and levels of services received by Sky’s customers. Each of Sky’s services has a different contribution to Adjusted EBITDA. We believe this metric is useful in understanding the trends in our business across all of our direct-to-consumer service offerings.

Sky Segment – Revenue

Direct-to-Consumer

Revenue decreased for the three months ended March 31, 2020 compared to the same period in 2019. Excluding the impact of foreign currency, revenue decreased primarily due to a decrease in average revenue per customer relationship driven by the impacts of COVID-19, which has resulted in lower sports subscription revenues, partially offset by an increase in customer relationships compared to the prior year period.

Content

Revenue decreased for the three months ended March 31, 2020 compared to the same period in 2019. Excluding the impact of foreign currency, revenue decreased reflecting the deferral of wholesale revenue from sports programming due to professional sports leagues postponing events as a result of COVID-19.

Advertising

Revenue decreased for the three months ended March 31, 2020 compared to the same period in 2019. Excluding the impact of foreign currency, revenue decreased primarily due to overall market weakness, which has worsened due to COVID-19, as well as the impact of changes in legislation related to gambling advertisements in the U.K. and Italy that occurred in the third quarter of 2019.

Sky Segment – Operating Costs and Expenses

Programming and production costs decreased for the three months ended March 31, 2020 compared to the same period in 2019. Excluding the impact of foreign currency, programming and production costs decreased primarily due to decreases in the recognition of sports programming costs as a result of professional sports leagues postponing events as a result of COVID-19. The costs will be recognized in future periods to the extent that the seasons resume.

Direct network costs increased for the three months ended March 31, 2020 compared to the same period in 2019. Excluding the impact of foreign currency, direct network costs increased primarily due to an increase in costs associated with Sky’s high-speed internet and wireless phone services as a result of increases in the number of customers receiving these services.

Other expenses were flat for the three months ended March 31, 2020 compared to the same period in 2019. Excluding the impact of foreign currency, other expenses increased primarily due to an increase in marketing costs related to Sky Q.

Corporate and Other Results of Operations



	Three Months Ended March 31,						Increase/ (Decrease)
(in millions)	2020			2019			$			%
Revenue	$	120		$	108		$	12		10.5	%
Operating costs and expenses	386			346			40			11.6
Adjustment for Sky transaction-related costs	(14		)	(51		)	37			NM
Adjusted EBITDA	$	(252	)	$	(187	)	$	(65	)	(34.8	)%

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

Corporate and Other – Revenue

Revenue primarily relates to Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania.

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Corporate and Other – Operating Costs and Expenses

Expenses primarily include overhead, personnel costs, the costs of other business initiatives, such as the development of Peacock and operating costs and expenses associated with Comcast Spectacor.

Expenses increased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to startup costs associated with Peacock, which were partially offset by a reduction in costs related to the Sky transaction. Corporate and Other Adjusted EBITDA excludes Sky transaction-related costs.

We launched Peacock in April 2020 and expect to continue to incur significant costs to develop and scale our direct-to-consumer streaming service.

Non-GAAP Financial Measures

Consolidated Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure and is the primary basis used to measure the operational strength and performance of our businesses as well as to assist in the evaluation of underlying trends in our businesses. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. It is also unaffected by our capital and tax structures, and by our investment activities, including the results of entities that we do not consolidate, as our management excludes these results when evaluating our operating performance. Our management and Board of Directors use this financial measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. Additionally, we believe that Adjusted EBITDA is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure of Adjusted EBITDA may not be directly comparable to similar measures used by other companies.

We define Adjusted EBITDA as net income attributable to Comcast Corporation before net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock, income tax expense, investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any. From time to time, we may exclude from Adjusted EBITDA the impact of certain events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance.

We reconcile consolidated Adjusted EBITDA to net income attributable to Comcast Corporation. This measure should not be considered a substitute for operating income, net income (loss), net income attributable to Comcast Corporation, or net cash provided by operating activities that we have reported in accordance with GAAP.

Reconciliation from Net Income Attributable to Comcast Corporation to Adjusted EBITDA



	Three Months Ended March 31,
(in millions)	2020		2019
Net income attributable to Comcast Corporation	$	2,147	$	3,553
Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock	77		79
Income tax expense	700		1,076
Investment and other (income) loss, net	716		(676		)
Interest expense	1,212		1,150
Depreciation	2,107		2,240
Amortization	1,157		1,080
Adjustment for Sky transaction-related costs	14		51
Adjusted EBITDA	$	8,130	$	8,553

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Constant Currency

Constant currency and constant currency growth rates are non-GAAP financial measures that present our results of operations excluding the estimated effects of foreign currency exchange rate fluctuations. Certain of our businesses, including Sky, have operations outside the United States that are conducted in local currencies. As a result, the comparability of the financial results reported in U.S. dollars is affected by changes in foreign currency exchange rates. In our Sky segment, we use constant currency and constant currency growth rates to evaluate the underlying performance of the business, and we believe it is helpful for investors to present operating results on a comparable basis period over period to evaluate its underlying performance.

Constant currency and constant currency growth rates are calculated by comparing the comparative period results in the prior year adjusted to reflect the average exchange rates from the current year period rather than the actual exchange rates in effect during the respective prior year periods.

Reconciliation of Sky Constant Currency Growth Rates



	Three Months Ended March 31,
	Actual		Constant Currency		Constant Currency Growth
(in millions, except per customer data)	2020		2019		%
Revenue
Direct-to-consumer	$	3,679	$	3,749	(1.9	)%
Content	325		363		(10.5	)
Advertising	513		580		(11.6	)
Total revenue	4,517		4,692		(3.7	)
Operating costs and expenses
Programming and production	2,064		2,248		(8.2	)
Direct network costs	457		378		20.9
Other	1,445		1,415		2.1
Total operating costs and expenses	3,966		4,041		(1.9	)
Adjusted EBITDA	$	551	$	651	(15.3	)%
Average monthly direct-to-consumer revenue per customer relationship	$	51.19	$	52.83	(3.1	)%

Liquidity and Capital Resources

Our businesses generate significant cash flows from operating activities. We believe that we will be able to continue to meet our current and long-term liquidity and capital requirements, including fixed charges, through our cash flows from operating activities; existing cash, cash equivalents and investments; available borrowings under our existing credit facilities; and our ability to obtain future external financing. Refer to “Impacts of COVID-19” for additional discussion.

We maintain significant availability under our revolving credit facilities and commercial paper programs to meet our short-term liquidity requirements. As of March 31, 2020, amounts available under our revolving credit facilities, net of amounts outstanding under our commercial paper programs and outstanding letters of credit and bank guarantees, totaled $9.2 billion.

Operating Activities

Components of Net Cash Provided by Operating Activities



	Three Months Ended March 31,
(in millions)	2020			2019
Operating income	$	4,852		$	5,182
Depreciation, amortization and other operating gains	3,264			3,320
Noncash share-based compensation	298			245
Changes in operating assets and liabilities	(1,393		)	(535		)
Payments of interest	(991		)	(970		)
Payments of income taxes	(281		)	(189		)
Other	75			178
Net cash provided by operating activities	$	5,824		$	7,231

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The variance in changes in operating assets and liabilities for the three months ended March 31, 2020 compared to the same period in 2019 was primarily due to the timing of our film and television costs, including sports rights, and collections on receivables, which were impacted by COVID-19.

Investing Activities

Net cash used in investing activities for the three months ended March 31, 2020 consisted primarily of capital expenditures, cash paid for intangible assets and the construction of Universal Beijing Resort. Net cash used in investing activities for the three months ended March 31, 2019 consisted primarily of capital expenditures, cash paid for intangible assets and purchase of investments. Capital expenditures decreased for the three months ended March 31, 2020 compared to the same period in 2019 primarily due to decreases in spending by our Theme Parks, Cable Communications and Sky segments. We anticipate further declines in spending across our segments as a result of COVID-19, even as we continue to invest in scalable infrastructure to increase network capacity in our Cable Communications segment.

Financing Activities

Net cash provided by financing activities for the three months ended March 31, 2020 consisted primarily of proceeds from borrowings, partially offset by repayments of debt, dividend payments and repurchases of common stock under our employee plans. Net cash used in financing activities for the three months ended March 31, 2019 consisted primarily of repayments of debt, dividend payments and repurchases of common stock under our employee plans.

In February 2020, we issued $3.2 billion (using exchange rates on the date of issuance) of fixed rate Euro senior notes maturing between 2027 and 2040 and $1.8 billion (using exchange rates on the date of issuance) of fixed rate Sterling senior notes maturing between 2029 and 2036. In March 2020, we issued $4.0 billion of fixed rate senior notes maturing between 2025 and 2040.

For the three months ended March 31, 2020, we made debt repayments totaling $7.4 billion, including the early redemption of $6.5 billion of senior notes maturing between 2021 and 2047.

As of March 31, 2020, we had no commercial paper outstanding and there were no amounts outstanding under our revolving credit facilities.

We have made, and may from time to time in the future make, optional repayments on our debt obligations, which may include repurchases or exchanges of our outstanding public notes and debentures, depending on various factors, such as market conditions. See Notes 6 and 7 for additional information on our financing activities.

Share Repurchases and Dividends

Effective January 1, 2017, our Board of Directors increased our share repurchase program authorization to $12 billion, which does not have an expiration date. Under the authorization, we may repurchase shares in the open market or in private transactions. We have paused our share repurchase program in order to accelerate the reduction of indebtedness we incurred in connection with the acquisition of Sky, and no common shares were repurchased under the authorization for the three months ended March 31, 2020.

We paid $233 million for the three months ended March 31, 2020 related to employee taxes associated with the administration of our share-based compensation plans.

In January 2020, our Board of Directors approved a 10% increase in our dividend to $0.92 per share on an annualized basis. In January 2020, our Board of Directors approved our first quarter dividend of $0.23 per share to be paid in April 2020. We expect to continue to pay quarterly dividends, although each dividend is subject to approval by our Board of Directors. On January 29, 2020, we paid dividends of $977 million.

Guarantee Structure

Our debt is primarily issued at Comcast, although we also have debt at certain of our subsidiaries as a result of acquisitions and other issuances. A substantial amount of this debt is subject to guarantees by Comcast and by certain subsidiaries that we have put in place to simplify our capital structure. We believe this guarantee structure provides liquidity benefits to debt investors and helps to simplify credit analysis with respect to relative value considerations of guaranteed subsidiary debt.

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Debt and Guarantee Structure
(in billions)	March 31, 2020			December 31, 2019
Debt subject to cross-guarantees
Comcast	$	83.8		$	80.4
NBCUniversal^(a)	3.7			5.8
Comcast Cable^(a)	2.1			2.1
	89.6			88.3
Debt subject to one-way guarantees
Sky	9.0			9.2
Other^(a)	4.1			4.1
	13.1			13.3
Debt not guaranteed
Universal Beijing Resort^(b)	1.5			1.3
Other	1.1			1.0
	2.6			2.3
Debt issuance costs, premiums, discounts, fair value adjustments for acquisition accounting and hedged positions, net	(1.7		)	(1.7		)
Total debt	$	103.6		$	102.2


(a)	NBCUniversal, Comcast Cable and Comcast Holdings (included within other debt subject to one-way guarantees) are each consolidated subsidiaries subject to the periodic reporting requirements of the SEC. The guarantee structures and related disclosures in this section, together with Exhibit 22, satisfy these reporting obligations.


(b)	Universal Beijing Resort debt financing is secured by the assets of Universal Beijing Resort and the equity interests of the investors. See Note 7 for additional information.

Cross-guarantees

Comcast, NBCUniversal and Comcast Cable (the “Guarantors”) fully and unconditionally, jointly and severally, guarantee each other's debt securities. NBCUniversal and Comcast Cable also guarantee other borrowings of Comcast, including its revolving credit facility. These guarantees rank equally with all other general unsecured and unsubordinated obligations of the respective Guarantors. However, the obligations of the Guarantors under the guarantees are structurally subordinated to the indebtedness and other liabilities of their respective non-guarantor subsidiaries. The obligations of each Guarantor are limited to the maximum amount that would not render such Guarantor’s obligations subject to avoidance under applicable fraudulent conveyance provisions of U.S. and non-U.S. law. Each Guarantor’s obligations will remain in effect until all amounts payable with respect to the guaranteed securities have been paid in full. However, a guarantee by NBCUniversal or Comcast Cable of Comcast’s debt securities, or by NBCUniversal of Comcast Cable’s debt securities, will terminate upon a disposition of such Guarantor entity or all or substantially all of its assets.

The Guarantors are each holding companies that principally hold investments in, borrow from and lend to, subsidiary operating companies; issue and service third-party debt obligations; repurchase shares and pay dividends; and engage in certain corporate and headquarters activities. The Guarantors are generally dependent on subsidiary operating companies to fund these activities. Accordingly, as of March 31, 2020, the combined Guarantors in the aggregate have notes payable to and receivable from other Comcast subsidiaries of $123.9 billion and $19.9 billion, respectively. The underlying net assets of the subsidiary operating companies are significantly in excess of these obligations.

One-way Guarantees

Comcast provides full and unconditional guarantees of certain debt issued by Sky and other consolidated subsidiaries not subject to the periodic reporting requirements of the SEC.

Comcast also provides a full and unconditional guarantee of $185 million principal amount of subordinated debt issued by Comcast Holdings. Comcast’s obligations under this guarantee are subordinated and subject, in right of payment, to the prior payment in full of all of Comcast’s senior indebtedness, including debt issued or debt guaranteed by Comcast on a senior basis. Comcast’s obligations as guarantor will remain in effect until all amounts payable with respect to the guaranteed debt have been paid in full. However, the guarantee will terminate upon a disposition of Comcast Holdings or all or substantially all of its assets. Comcast Holdings is a consolidated subsidiary holding company that directly or indirectly holds 100% and approximately 37% of our equity interests in Comcast Cable and NBCUniversal, respectively, and as of March 31, 2020 has approximately $0.5 billion of notes receivable from a subsidiary of Comcast and $0.3 billion of other assets.

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Critical Accounting Judgments and Estimates

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

For a more complete discussion of the accounting judgments and estimates that we have identified as critical in the preparation of our condensed consolidated financial statements, please refer to our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2019 Annual Report on Form 10-K.

Recent Accounting Pronouncements

See Note 8 for additional information related to recent accounting pronouncements.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have evaluated the information required under this item that was disclosed in our 2019 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)) 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, such disclosure controls and procedures were effective.

Changes in internal control over financial reporting

There were no changes in 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 the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II: OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

See Note 12 included in this Quarterly Report on Form 10-Q for a discussion of legal proceedings.

ITEM 1A: RISK FACTORS

Part I, Item 1A., Risk Factors in our 2019 Annual Report on Form 10-K includes a discussion of our risk factors. The information presented below updates, and should be read in conjunction with, the risk factors and information disclosed in our 2019 Annual Report on Form 10-K. Except as presented below, there have been no material changes from the risk factors previously disclosed in Item 1A of our 2019 Annual Report on Form 10-K.

The COVID-19 pandemic could have a material adverse effect on our businesses and results of operations.

The impacts of COVID-19 and measures to prevent its spread are affecting our businesses in a number of ways. For example, we have temporarily closed all of our theme parks and we cannot currently predict when the parks will reopen, or their operating levels after they reopen. The creation and availability of our film and television programming in the United States and globally have been and will continue to be disrupted, including as a result of the postponement or cancellation of sporting events (such as the professional soccer, hockey, baseball and basketball leagues and the Olympics), theatrical closures and the suspension of entertainment content production. Our Cable Communications results, while strong in the first quarter of 2020, will be negatively affected in the second quarter by the significant deterioration in domestic economic conditions in recent weeks and by the costs associated with our support of customer connectivity as the population increasingly works and learns remotely from home. We expect the continued deterioration of global economic conditions will result in lower advertising revenues and consumer spending across our businesses.

We expect that the ultimate significance of the impact of COVID-19 on our businesses will vary but will generally depend on the extent of measures taken affecting day-to-day life and the length of time that such measures remain in place to respond to COVID-19. At this point, it is impossible to predict such extent and duration and the degree to which supply and demand for our products and services, including advertising, will be affected. This uncertainty makes it challenging for management to estimate with precision the future performance of our businesses However, we expect these impacts of COVID-19 to increase in significance in the second quarter of 2020, and to have a material adverse impact on our consolidated results of operations over the near to medium term.

COVID-19 may also have the effect of heightening many of the other risks described in ‘‘Risk Factors’’ set forth in our 2019 Annual Report on Form 10-K.

ITEM 5: OTHER INFORMATION

On April 29, 2020, the employment agreement of Mr. David N. Watson, President & Chief Executive Officer, Comcast Cable, was amended to secure his employment through June 30, 2025 and to increase his annual cash bonus opportunity from 250% to 300% of his base salary, effective March 1, 2020.

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ITEM 6: EXHIBITS



Exhibit No.		Description
10.1*		Form of Restricted Stock Unit Award under the Comcast Corporation 2002 Restricted Stock Plan.
10.2*		Comcast Corporation 2005 Deferred Compensation Plan, as amended and restated effective February 19, 2020.
10.3*		Comcast Corporation 2002 Restricted Stock Plan, as amended and restated effective April 10, 2020.
10.4*		Comcast Corporation 2003 Stock Option Plan, as amended and restated effective April 10, 2020.
10.5*		Amendment No. 2 to Employment Agreement with David N. Watson, dated as of April 29, 2020.
22.1		Subsidiary guarantors and issuers of guaranteed securities and affiliates whose securities collateralize securities of the registrant.
31.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following financial statements from Comcast Corporation’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020, filed with the Securities and Exchange Commission on April 30, 2020, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Condensed Consolidated Statement of Income; (ii) the Condensed Consolidated Statement of Comprehensive Income; (iii) the Condensed Consolidated Statement of Cash Flows; (iv) the Condensed Consolidated Balance Sheet; (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.

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SIGNATURES

Comcast

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



		COMCAST CORPORATION

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

Date: April 30, 2020