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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): March 8, 2021
| (Exact Name of Registrant as Specified in its Charter) | ||||||||||||||
| (State or Other Jurisdiction of Incorporation) | ||||||||||||||
| (Commission File Number) | (IRS Employer Identification No.) | |||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code: (215 ) 286-1700
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
| Title of Each Class | Trading symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if 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. ☐
Item 7.01. Regulation FD Disclosure
Beginning in the first quarter of 2021, Comcast Corporation will change its presentation of segment operating results relating to NBCUniversal, reflecting the reorganized operating structure in its television and streaming businesses to a centralized structure optimizing content creation, distribution and monetization. The operations of Peacock, which were previously reported in Corporate and Other, will now be included in NBCUniversal results, and the operations of NBCUniversal will now be presented in three reportable business segments: Media, Studios and Theme Parks. These changes have no effect on Comcast Corporation’s consolidated financial statements or results of operations. A summary of the NBCUniversal segments under the new reporting structure follows:
•Media: represents primarily our NBCUniversal cable networks and broadcast networks and television stations (previously reported in Cable Networks and Broadcast Television segments), and Peacock
•Studios: represents primarily our NBCUniversal film and television studio production and distribution operations (previously reported in Filmed Entertainment, Broadcast Television and Cable Networks segments)
•Theme Parks: represents primarily the operations of our Universal theme parks
Exhibit 99.1 contains unaudited segment financial information for 2019 and 2020 under the new structure.
Comcast Corporation does not intend for this Item 7.01 or Exhibit 99.1 to be treated as "filed" under the Securities Exchange Act of 1934, as amended, or incorporated by reference into its filings under the Securities Act of 1933, as amended.
Item 9.01. Exhibits
Exhibit Number | Description | |||||||||||||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||||||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| COMCAST CORPORATION | |||||||||||||||||
| Date: | By: | /s/ Daniel C. Murdock | |||||||||||||||
| Daniel C. Murdock | |||||||||||||||||
| Executive Vice President, Chief Accounting Officer and Controller | |||||||||||||||||
| (Principal Accounting Officer) | |||||||||||||||||
Exhibit 99.1
Summary of Segment Reporting Changes
The following table presents a reconciliation of previously reported segment results for the years ended 2019 and 2020 to our segment results under the new segment structure, including: (1) presentation of Peacock (previously in Corporate and Other) with NBCUniversal results in the Media segment, (2) the combination of our television businesses (previously in Cable Networks and Broadcast Television) into the Media segment and (3) the realignment of certain other business operations within our NBCUniversal segments, including the movement of our television studio operations (previously in Cable Networks and Broadcast Television) into the Studios segment with the operations of our film studios (previously in Filmed Entertainment):
| Year ended December 31, 2019 | Year ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
($ in millions; unaudited) | As Originally Reported | Peacock | Combine Television | Studios and Other | Recast | As Originally Reported | Peacock | Combine Television | Studios and Other | Recast | |||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||
| Cable Communications | $ | 58,082 | $ | 58,082 | $ | 60,051 | $ | 60,051 | |||||||||||||||||||||||||||
| NBCUniversal | |||||||||||||||||||||||||||||||||||
| Cable Networks | 11,513 | (11,513) | 10,849 | (10,849) | |||||||||||||||||||||||||||||||
| Broadcast Television | 10,261 | (10,261) | 10,244 | (10,244) | |||||||||||||||||||||||||||||||
| Media | 21,774 | (1,827) | 19,947 | 118 | 21,093 | (2,275) | 18,936 | ||||||||||||||||||||||||||||
| Filmed Entertainment / Studios | 6,493 | 2,859 | 9,352 | 5,276 | 2,858 | 8,134 | |||||||||||||||||||||||||||||
| Theme Parks | 5,933 | 280 | 6,213 | 1,846 | 248 | 2,094 | |||||||||||||||||||||||||||||
| Headquarters and Other | 83 | (52) | 31 | 121 | (68) | 53 | |||||||||||||||||||||||||||||
| Eliminations | (316) | (9) | (1,260) | (1,585) | (254) | (989) | (763) | (2,006) | |||||||||||||||||||||||||||
| Total NBCUniversal | 33,967 | (9) | — | — | 33,958 | 28,082 | (871) | — | — | 27,211 | |||||||||||||||||||||||||
| Sky | 19,219 | 19,219 | 18,594 | 18,594 | |||||||||||||||||||||||||||||||
| Corporate and Other | 333 | 333 | 366 | (118) | 248 | ||||||||||||||||||||||||||||||
| Eliminations | (2,659) | 9 | (2,650) | (3,529) | 989 | (2,540) | |||||||||||||||||||||||||||||
| Total consolidated revenue | $ | 108,942 | $ | — | $ | — | $ | — | $ | 108,942 | $ | 103,564 | $ | — | $ | — | $ | — | $ | 103,564 | |||||||||||||||
Adjusted EBITDA1 | |||||||||||||||||||||||||||||||||||
| Cable Communications | $ | 23,266 | $ | 23,266 | $ | 25,270 | $ | 25,270 | |||||||||||||||||||||||||||
| NBCUniversal | |||||||||||||||||||||||||||||||||||
| Cable Networks | 4,444 | (4,444) | 4,616 | (4,616) | |||||||||||||||||||||||||||||||
| Broadcast Television | 1,730 | (1,730) | 1,934 | (1,934) | |||||||||||||||||||||||||||||||
| Media | (60) | 6,174 | (280) | 5,834 | (662) | 6,550 | (314) | 5,574 | |||||||||||||||||||||||||||
| Filmed Entertainment / Studios | 833 | 225 | 1,058 | 785 | 256 | 1,041 | |||||||||||||||||||||||||||||
| Theme Parks | 2,455 | 43 | 2,498 | (541) | 64 | (477) | |||||||||||||||||||||||||||||
| Headquarters and Other | (689) | (1) | (690) | (521) | (42) | (563) | |||||||||||||||||||||||||||||
| Eliminations | (1) | (1) | 13 | 11 | (4) | (252) | 36 | (220) | |||||||||||||||||||||||||||
| Total NBCUniversal | 8,772 | (61) | — | — | 8,711 | 6,269 | (914) | — | — | 5,355 | |||||||||||||||||||||||||
| Sky | 3,099 | 3,099 | 1,954 | 1,954 | |||||||||||||||||||||||||||||||
| Corporate and Other | (880) | 60 | (820) | (2,447) | 662 | (1,785) | |||||||||||||||||||||||||||||
| Eliminations | 1 | 1 | 2 | (220) | 252 | 32 | |||||||||||||||||||||||||||||
Total consolidated Adjusted EBITDA1 | $ | 34,258 | $ | — | $ | — | $ | — | $ | 34,258 | $ | 30,826 | $ | — | $ | — | $ | — | $ | 30,826 | |||||||||||||||
1Adjusted EBITDA is the measure of profit and loss for our segments. Consolidated Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measure” section below for additional information, including a reconciliation from net income attributable to Comcast Corporation to consolidated Adjusted EBITDA.
1
Recast Segment Operating Results
The following tables present our segment operating results for 2019 and 2020 under the new segment structure:
| 2019 | 2020 | |||||||||||||||||||||||||||||||||||||
| ($ in millions; unaudited) | 1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | ||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||||||||||
| Cable Communications | $ | 14,280 | $ | 14,450 | $ | 14,584 | $ | 14,768 | $ | 58,082 | $ | 14,918 | $ | 14,428 | $ | 15,000 | $ | 15,705 | $ | 60,051 | ||||||||||||||||||
| NBCUniversal | ||||||||||||||||||||||||||||||||||||||
| Advertising | 2,184 | 2,281 | 2,021 | 2,781 | 9,267 | 2,167 | 1,648 | 1,881 | 2,600 | 8,296 | ||||||||||||||||||||||||||||
| Distribution | 2,260 | 2,239 | 2,198 | 2,190 | 8,887 | 2,287 | 2,060 | 2,194 | 2,254 | 8,795 | ||||||||||||||||||||||||||||
| Other | 410 | 468 | 452 | 463 | 1,793 | 424 | 388 | 514 | 519 | 1,845 | ||||||||||||||||||||||||||||
| Total Media | 4,854 | 4,988 | 4,671 | 5,434 | 19,947 | 4,878 | 4,096 | 4,589 | 5,373 | 18,936 | ||||||||||||||||||||||||||||
| Content licensing | 1,701 | 1,407 | 1,320 | 1,945 | 6,373 | 1,819 | 1,746 | 1,584 | 1,408 | 6,557 | ||||||||||||||||||||||||||||
| Theatrical | 447 | 251 | 549 | 222 | 1,469 | 316 | 7 | 28 | 67 | 418 | ||||||||||||||||||||||||||||
| Home entertainment and other | 405 | 366 | 304 | 435 | 1,510 | 274 | 299 | 286 | 300 | 1,159 | ||||||||||||||||||||||||||||
| Total Studios | 2,553 | 2,024 | 2,173 | 2,602 | 9,352 | 2,409 | 2,052 | 1,898 | 1,775 | 8,134 | ||||||||||||||||||||||||||||
| Theme Parks | 1,346 | 1,518 | 1,703 | 1,646 | 6,213 | 925 | 136 | 385 | 648 | 2,094 | ||||||||||||||||||||||||||||
| Headquarters and Other | 6 | 9 | 8 | 8 | 31 | 9 | 11 | 12 | 21 | 53 | ||||||||||||||||||||||||||||
| Eliminations | (446) | (333) | (260) | (546) | (1,585) | (492) | (580) | (551) | (383) | (2,006) | ||||||||||||||||||||||||||||
| Total NBCUniversal | 8,313 | 8,206 | 8,295 | 9,144 | 33,958 | 7,729 | 5,715 | 6,333 | 7,434 | 27,211 | ||||||||||||||||||||||||||||
| Sky | 4,797 | 4,828 | 4,554 | 5,040 | 19,219 | 4,517 | 4,079 | 4,793 | 5,205 | 18,594 | ||||||||||||||||||||||||||||
| Corporate and Other | 108 | 56 | 42 | 127 | 333 | 120 | 40 | 44 | 44 | 248 | ||||||||||||||||||||||||||||
| Eliminations | (639) | (682) | (648) | (681) | (2,650) | (675) | (547) | (638) | (680) | (2,540) | ||||||||||||||||||||||||||||
| Total consolidated revenue | $ | 26,859 | $ | 26,858 | $ | 26,827 | $ | 28,398 | $ | 108,942 | $ | 26,609 | $ | 23,715 | $ | 25,532 | $ | 27,708 | $ | 103,564 | ||||||||||||||||||
| 2019 | 2020 | |||||||||||||||||||||||||||||||||||||
| ($ in millions; unaudited) | 1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | ||||||||||||||||||||||||||||
Operating Costs and Expenses1 | ||||||||||||||||||||||||||||||||||||||
| Cable Communications | $ | 8,552 | $ | 8,596 | $ | 8,783 | $ | 8,885 | $ | 34,816 | $ | 8,842 | $ | 8,252 | $ | 8,589 | $ | 9,098 | $ | 34,781 | ||||||||||||||||||
| NBCUniversal | ||||||||||||||||||||||||||||||||||||||
| Programming and production | 2,267 | 2,251 | 2,363 | 3,026 | 9,907 | 2,268 | 1,589 | 2,604 | 2,858 | 9,319 | ||||||||||||||||||||||||||||
| Other operating and administrative | 752 | 825 | 815 | 894 | 3,286 | 840 | 755 | 788 | 826 | 3,209 | ||||||||||||||||||||||||||||
| Advertising, marketing and promotion | 231 | 213 | 246 | 230 | 920 | 241 | 116 | 212 | 265 | 834 | ||||||||||||||||||||||||||||
| Total Media | 3,250 | 3,289 | 3,424 | 4,150 | 14,113 | 3,349 | 2,460 | 3,604 | 3,949 | 13,362 | ||||||||||||||||||||||||||||
| Programming and production | 1,524 | 1,257 | 1,400 | 1,722 | 5,903 | 1,513 | 1,398 | 1,267 | 1,235 | 5,413 | ||||||||||||||||||||||||||||
| Other operating and administrative | 208 | 219 | 204 | 218 | 849 | 213 | 167 | 204 | 229 | 813 | ||||||||||||||||||||||||||||
| Advertising, marketing and promotion | 402 | 372 | 355 | 413 | 1,542 | 383 | 164 | 87 | 233 | 867 | ||||||||||||||||||||||||||||
| Total Studios | 2,134 | 1,848 | 1,959 | 2,353 | 8,294 | 2,109 | 1,729 | 1,558 | 1,697 | 7,093 | ||||||||||||||||||||||||||||
| Theme Parks | 832 | 933 | 967 | 983 | 3,715 | 838 | 529 | 559 | 645 | 2,571 | ||||||||||||||||||||||||||||
| Headquarters and Other | 203 | 188 | 129 | 201 | 721 | 230 | 93 | 139 | 154 | 616 | ||||||||||||||||||||||||||||
| Eliminations | (441) | (370) | (256) | (529) | (1,596) | (486) | (476) | (437) | (387) | (1,786) | ||||||||||||||||||||||||||||
| Total NBCUniversal | 5,978 | 5,888 | 6,223 | 7,158 | 25,247 | 6,040 | 4,335 | 5,423 | 6,058 | 21,856 | ||||||||||||||||||||||||||||
| Sky | 4,134 | 4,056 | 3,655 | 4,275 | 16,120 | 3,966 | 3,330 | 4,278 | 5,066 | 16,640 | ||||||||||||||||||||||||||||
Corporate and Other1 | 293 | 263 | 261 | 336 | 1,153 | 313 | 429 | 308 | 983 | 2,033 | ||||||||||||||||||||||||||||
| Eliminations | (651) | (661) | (648) | (692) | (2,652) | (682) | (558) | (649) | (683) | (2,572) | ||||||||||||||||||||||||||||
Total consolidated operating costs and expenses1 | $ | 18,306 | $ | 18,142 | $ | 18,274 | $ | 19,962 | $ | 74,684 | $ | 18,479 | $ | 15,788 | $ | 17,949 | $ | 20,522 | $ | 72,738 | ||||||||||||||||||
1Operating costs and expenses represent total costs and expenses excluding depreciation and amortization expense and other operating gains, and excluding from Corporate and Other charges of $177 million related to a legal settlement in the third quarter 2020, and costs of $51 million, $84 million, $33 million, $12 million, $14 million, $16 million, $10 million and $16 million related to the Sky transaction, primarily relating to the replacement of share-based compensation awards and costs related to integration activities, in first quarter 2019, second quarter 2019, third quarter 2019, fourth quarter 2019, first quarter 2020, second quarter 2020, third quarter 2020 and fourth quarter 2020, respectively, as these amounts are excluded from Adjusted EBITDA.
2
| 2019 | 2020 | |||||||||||||||||||||||||||||||||||||
| ($ in millions; unaudited) | 1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | ||||||||||||||||||||||||||||
Adjusted EBITDA1 | ||||||||||||||||||||||||||||||||||||||
| Cable Communications | $ | 5,728 | $ | 5,854 | $ | 5,801 | $ | 5,883 | $ | 23,266 | $ | 6,076 | $ | 6,176 | $ | 6,411 | $ | 6,607 | $ | 25,270 | ||||||||||||||||||
| NBCUniversal | ||||||||||||||||||||||||||||||||||||||
| Media | 1,604 | 1,699 | 1,247 | 1,284 | 5,834 | 1,529 | 1,636 | 985 | 1,424 | 5,574 | ||||||||||||||||||||||||||||
| Studios | 419 | 176 | 214 | 249 | 1,058 | 300 | 323 | 340 | 78 | 1,041 | ||||||||||||||||||||||||||||
| Theme Parks | 514 | 585 | 736 | 663 | 2,498 | 87 | (393) | (174) | 3 | (477) | ||||||||||||||||||||||||||||
| Headquarters and Other | (197) | (179) | (121) | (193) | (690) | (221) | (82) | (127) | (133) | (563) | ||||||||||||||||||||||||||||
| Eliminations | (5) | 37 | (4) | (17) | 11 | (6) | (104) | (114) | 4 | (220) | ||||||||||||||||||||||||||||
| Total NBCUniversal | 2,335 | 2,318 | 2,072 | 1,986 | 8,711 | 1,689 | 1,380 | 910 | 1,376 | 5,355 | ||||||||||||||||||||||||||||
| Sky | 663 | 772 | 899 | 765 | 3,099 | 551 | 749 | 515 | 139 | 1,954 | ||||||||||||||||||||||||||||
| Corporate and Other | (185) | (207) | (219) | (209) | (820) | (193) | (389) | (264) | (939) | (1,785) | ||||||||||||||||||||||||||||
| Eliminations | 12 | (21) | — | 11 | 2 | 7 | 11 | 11 | 3 | 32 | ||||||||||||||||||||||||||||
Total consolidated Adjusted EBITDA1 | $ | 8,553 | $ | 8,716 | $ | 8,553 | $ | 8,436 | $ | 34,258 | $ | 8,130 | $ | 7,927 | $ | 7,583 | $ | 7,186 | $ | 30,826 | ||||||||||||||||||
1Adjusted EBITDA is the measure of profit and loss for our segments. Consolidated Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measure” section below for additional information, including a reconciliation from net income attributable to Comcast Corporation to consolidated Adjusted EBITDA.
Non-GAAP Financial Measure
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.
A reconciliation from net income attributable to Comcast Corporation to Adjusted EBITDA is presented below:
| 2019 | 2020 | |||||||||||||||||||||||||||||||||||||
| ($ in millions; unaudited) | 1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | ||||||||||||||||||||||||||||
| Net income attributable to Comcast Corporation | $ | 3,553 | $ | 3,125 | $ | 3,217 | $ | 3,162 | $ | 13,057 | $ | 2,147 | $ | 2,988 | $ | 2,019 | $ | 3,380 | $ | 10,534 | ||||||||||||||||||
| Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock | 79 | 78 | 71 | 38 | 266 | 77 | 21 | 12 | 57 | 167 | ||||||||||||||||||||||||||||
| Income tax expense | 1,076 | 961 | 775 | 861 | 3,673 | 700 | 946 | 739 | 979 | 3,364 | ||||||||||||||||||||||||||||
| Investment and other (income) loss, net | (676) | 55 | 110 | 73 | (438) | 716 | (420) | 86 | (1,542) | (1,160) | ||||||||||||||||||||||||||||
| Interest expense | 1,150 | 1,137 | 1,167 | 1,113 | 4,567 | 1,212 | 1,112 | 1,220 | 1,044 | 4,588 | ||||||||||||||||||||||||||||
| Depreciation | 2,240 | 2,197 | 2,124 | 2,102 | 8,663 | 2,107 | 2,099 | 2,122 | 1,992 | 8,320 | ||||||||||||||||||||||||||||
| Amortization | 1,080 | 1,079 | 1,056 | 1,075 | 4,290 | 1,157 | 1,165 | 1,198 | 1,260 | 4,780 | ||||||||||||||||||||||||||||
| Adjustment for Sky transaction-related costs | 51 | 84 | 33 | 12 | 180 | 14 | 16 | 10 | 16 | 56 | ||||||||||||||||||||||||||||
| Adjustment for legal settlement | — | — | — | — | — | — | — | 177 | — | 177 | ||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 8,553 | $ | 8,716 | $ | 8,553 | $ | 8,436 | $ | 34,258 | $ | 8,130 | $ | 7,927 | $ | 7,583 | $ | 7,186 | $ | 30,826 | ||||||||||||||||||
3