Media Segment Results of Operations
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|
Three Months Ended
September 30,
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|
Increase/
(Decrease)
|
|
Nine Months Ended
September 30,
|
|
Increase/
(Decrease)
|
(in millions)
|
2021
|
|
2020
|
|
|
%
|
|
2021
|
|
2020
|
|
%
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
$
|
3,255
|
|
|
$
|
1,881
|
|
|
|
73.0
|
%
|
|
$
|
7,537
|
|
|
$
|
5,696
|
|
|
32.3
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%
|
Distribution
|
2,987
|
|
|
2,194
|
|
|
|
36.2
|
|
|
7,934
|
|
|
6,541
|
|
|
21.3
|
|
Other
|
528
|
|
|
514
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|
|
|
2.7
|
|
|
1,483
|
|
|
1,326
|
|
|
11.8
|
|
Total revenue
|
6,770
|
|
|
4,589
|
|
|
|
47.5
|
|
|
16,955
|
|
|
13,563
|
|
|
25.0
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
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|
Programming and production
|
4,475
|
|
|
2,604
|
|
|
|
71.8
|
|
|
9,676
|
|
|
6,461
|
|
|
49.7
|
|
Other operating and administrative
|
917
|
|
|
788
|
|
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|
16.4
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|
|
2,590
|
|
|
2,383
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|
|
8.7
|
|
Advertising, marketing and promotion
|
382
|
|
|
212
|
|
|
|
79.4
|
|
|
842
|
|
|
569
|
|
|
47.9
|
|
Total operating costs and expenses
|
5,774
|
|
|
3,604
|
|
|
|
60.2
|
|
|
13,107
|
|
|
9,413
|
|
|
39.2
|
|
Adjusted EBITDA
|
$
|
997
|
|
|
$
|
985
|
|
|
|
1.2
|
%
|
|
$
|
3,847
|
|
|
$
|
4,150
|
|
|
(7.3)
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%
|
Media Segment – Revenue
Revenue increased for the three and nine months ended September 30, 2021 compared to the same periods in 2020 primarily due to increases in advertising and distribution revenue, and included revenue from our broadcast of the Tokyo Olympics in the third quarter of 2021. Excluding $1.8 billion of revenue associated with our broadcast of the Tokyo Olympics, Media revenue increased 9.2% and 12.0% for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020.
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|
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|
Three Months Ended September 30,
|
Increase/(Decrease)
|
Nine Months Ended September 30,
|
Increase/(Decrease)
|
(in millions)
|
2021
|
2020
|
%
|
2021
|
2020
|
%
|
Advertising
|
$
|
3,255
|
|
$
|
1,881
|
|
73.0
|
%
|
$
|
7,537
|
|
$
|
5,696
|
|
32.3
|
%
|
Advertising, excluding Tokyo Olympics
|
2,017
|
|
1,881
|
|
7.2
|
|
6,300
|
|
5,696
|
|
10.6
|
|
Advertising revenue increased for the three and nine months ended September 30, 2021 compared to the same periods in 2020 primarily due to our broadcast of the Tokyo Olympics. Excluding $1.2 billion of revenue associated with our broadcast of the Tokyo Olympics for the three months ended September 30, 2021, advertising revenue increased due to higher pricing and increased advertising revenue at Peacock in the current year period, partially offset by fewer sporting events in the current year period due to COVID-19 timing impacts and continued audience ratings declines at our television networks. Excluding $1.2 billion of revenue associated with our broadcast of the Tokyo Olympics for the nine months ended September 30, 2021, advertising revenue increased due to higher pricing in the current year period, reduced spending from advertisers in the prior year period as a result of COVID-19, an increased number of sporting events and increased advertising revenue at Peacock, partially offset by continued audience ratings declines at our networks.
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|
Three Months Ended September 30,
|
Increase/(Decrease)
|
Nine Months Ended September 30,
|
Increase/(Decrease)
|
(in millions)
|
2021
|
2020
|
%
|
2021
|
2020
|
%
|
Distribution
|
$
|
2,987
|
|
$
|
2,194
|
|
36.2
|
%
|
$
|
7,934
|
|
$
|
6,541
|
|
21.3
|
%
|
Distribution, excluding Tokyo Olympics
|
2,465
|
|
2,194
|
|
12.4
|
|
7,413
|
|
6,541
|
|
13.3
|
|
Distribution revenue increased for the three and nine months ended September 30, 2021 compared to the same periods in 2020 primarily due to our broadcast of the Tokyo Olympics. Excluding $522 million of revenue associated with our broadcast of the Tokyo Olympics for the three months ended September 30, 2021, distribution revenue increased due to contractual rate increases in the current year period and increases at Peacock, partially offset by declines in the number of subscribers at our television networks. Excluding $522 million of revenue associated with our broadcast of the Tokyo Olympics for the nine months ended September 30, 2021, distribution revenue increased due to contractual rate increases in the current year period, credits accrued in the prior year period at some of our regional sports networks from fewer games played due to COVID-19 and increases at Peacock, partially offset by declines in the number of subscribers at our television networks.
Other revenue increased for the nine months ended September 30, 2021 compared to the same period in 2020 primarily due to increased revenue from our digital properties.
We expect the number of subscribers and audience ratings at our television networks will continue to decline as a result of the competitive environment and shifting video consumption patterns. Revenue included $230 million and $443 million related to Peacock for the three and nine months ended September 30, 2021, respectively. Revenue included $41 million and $47 million related to Peacock for the three and nine months ended September 30, 2020.
Media Segment – Operating Costs and Expenses
Operating costs and expenses increased for the three and nine months ended September 30, 2021 compared to the same periods in 2020 due to increases in programming and production costs, advertising, marketing and promotion costs and other operating and administrative costs. Programming and production costs increased for the three months ended September 30, 2021 primarily due to costs associated with our broadcast of the Tokyo Olympics and higher amortization expenses related to programming at Peacock in the current year period. This increase was partially offset by lower programming costs related to other sporting events due to COVID-19 timing impacts. Programming and production costs increased for the nine months ended September 30, 2021 primarily due to costs associated with our broadcast of the Tokyo Olympics, higher programming costs related to other sporting events due to COVID-19 timing impacts and higher amortization expense related to programming at Peacock in the current year period. Advertising, marketing and promotion costs increased primarily due to higher marketing related to Peacock and higher spending related to our television networks. Other operating and administrative costs increased due to increased costs related to Peacock, partially offset by cost savings initiatives.
Operating costs and expenses included $750 million and $1.6 billion related to Peacock for the three and nine months ended September 30, 2021, respectively. Operating costs and expenses included $274 million and $456 million related to Peacock for the three and nine months ended September 30, 2020, respectively. We expect to continue to incur significant costs related to additional content and marketing as we invest in the platform and attract new customers.
Studios Segment Results of Operations
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|
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|
Three Months Ended
September 30,
|
|
|
Increase/
(Decrease)
|
|
Nine Months Ended
September 30,
|
|
Increase/
(Decrease)
|
(in millions)
|
2021
|
|
2020
|
|
|
%
|
|
2021
|
|
2020
|
|
%
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Content licensing
|
$
|
1,827
|
|
|
$
|
1,584
|
|
|
|
15.4
|
%
|
|
$
|
5,683
|
|
|
$
|
5,149
|
|
|
10.4
|
%
|
Theatrical
|
307
|
|
|
28
|
|
|
|
NM
|
|
544
|
|
|
351
|
|
|
55.0
|
|
Home entertainment and other
|
273
|
|
|
286
|
|
|
|
(4.8)
|
|
|
801
|
|
|
859
|
|
|
(6.8)
|
|
Total revenue
|
2,407
|
|
|
1,898
|
|
|
|
26.8
|
|
|
7,027
|
|
|
6,359
|
|
|
10.5
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and production
|
1,744
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|
|
1,267
|
|
|
|
37.6
|
|
|
4,961
|
|
|
4,178
|
|
|
18.7
|
|
Other operating and administrative
|
146
|
|
|
204
|
|
|
|
(28.8)
|
|
|
475
|
|
|
584
|
|
|
(18.7)
|
|
Advertising, marketing and promotion
|
339
|
|
|
87
|
|
|
|
NM
|
|
759
|
|
|
634
|
|
|
19.7
|
|
Total operating costs and expenses
|
2,228
|
|
|
1,558
|
|
|
|
43.0
|
|
|
6,195
|
|
|
5,396
|
|
|
14.8
|
|
Adjusted EBITDA
|
$
|
179
|
|
|
$
|
340
|
|
|
|
(47.3)
|
%
|
|
$
|
833
|
|
|
$
|
963
|
|
|
(13.6)
|
%
|
Studios Segment – Revenue
Revenue increased for the three months ended September 30, 2021 compared to the same period in 2020 due to increases in theatrical revenue and content licensing revenue. Theatrical revenue increased primarily due to current year releases, including F9 and The Boss Baby: Family Business, and the impact of theater closures in the prior year period. Content licensing revenue increased primarily due to the timing of when content was made available by our television studios under licensing agreements, partially offset by the impacts of initial content licenses associated with the launch of Peacock in the prior year period.
Revenue increased for the nine months ended September 30, 2021 compared to the same period in 2020 due to increases in content licensing revenue and theatrical revenue, partially offset by a decrease in home entertainment and other revenue. Content licensing revenue increased primarily due to the timing of when content was made available by our television studios under licensing agreements, including a new licensing agreement for content that became exclusively available for streaming on Peacock during the first quarter of 2021, partially offset by the impacts of initial content licenses associated with the launch of Peacock in the prior year period. Theatrical revenue increased primarily due to releases in the current year period and the impact of COVID-19 on the operation of movie theaters. Home entertainment and other revenue decreased primarily due to a reduced number of film releases in the current year period due to COVID-19.
Studios Segment – Operating Costs and Expenses
Operating costs and expenses increased for the three months ended September 30, 2021 compared to the same period in 2020 due to increases in programming and production costs and advertising, marketing and promotion costs, partially offset by decreases in other operating and administrative costs. Programming and production costs increased primarily due to higher amortization associated with content licensing sales and theatrical releases in the current year period. Advertising, marketing and promotion costs increased due to higher spending on theatrical releases in the current year period. Other operating and administrative costs decreased due to cost savings initiatives.
Operating costs and expenses increased for the nine months ended September 30, 2021 compared to the same period in 2020 due to increases in programming and production costs and advertising, marketing and promotion costs, partially offset by a decrease in other operating and administrative costs. Programming and production costs increased primarily due to higher amortization associated with content licensing sales, including the new licensing agreement for content that became exclusively available for streaming on Peacock during the first quarter of 2021, higher amortization associated with theatrical releases in the current year period and the impact from the updated accounting guidance related to episodic television series, which was adopted and had a favorable impact on programming and production expense in the prior year period. Advertising, marketing and promotion costs increased due to higher spending on theatrical film releases in the current year period. Other operating and administrative costs decreased primarily due to cost savings initiatives.
Theme Parks Segment Results of Operations
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|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Increase/
(Decrease)
|
|
Nine Months Ended
September 30,
|
|
Increase/
(Decrease)
|
(in millions)
|
2021
|
|
2020
|
|
|
%
|
|
2021
|
|
2020
|
|
%
|
Revenue
|
$
|
1,449
|
|
|
$
|
385
|
|
|
|
NM
|
|
$
|
3,163
|
|
|
$
|
1,446
|
|
|
118.8
|
%
|
Operating costs and expenses
|
1,015
|
|
|
559
|
|
|
|
81.5
|
|
|
2,570
|
|
|
1,926
|
|
|
33.4
|
|
Adjusted EBITDA
|
$
|
434
|
|
|
$
|
(174)
|
|
|
|
NM
|
|
$
|
593
|
|
|
$
|
(480)
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Theme Parks Segment – Revenue
Revenue increased for the three and nine months ended September 30, 2021 compared to the same periods in 2020 primarily due to improved operating conditions compared to the prior year periods, when each of our theme parks were either operating at limited capacity or closed as a result of COVID-19. All of our theme parks temporarily closed beginning in mid to late first quarter of 2020. Our theme park in Orlando reopened with capacity restrictions in the second quarter of 2020 and began operating without capacity restrictions during the end of the second quarter of 2021. Our theme park in Hollywood reopened with capacity restrictions early in the second quarter of 2021 and began operating without capacity restrictions by the end of that quarter. While our theme park in Japan has been reopened with capacity restrictions since the second quarter of 2020, it had a temporary closure in the second quarter of 2021. Our newest theme park in Beijing opened in September 2021 with capacity restrictions.
Theme Parks Segment – Operating Costs and Expenses
Operating costs and expenses increased for the three and nine months ended September 30, 2021 compared to the same periods in 2020 primarily due to the operation of our theme parks in the current year periods compared to temporary closures and capacity restrictions in the prior year periods and increased pre-opening costs and operating costs after the opening of Universal Beijing Resort in September 2021.
NBCUniversal Headquarters, Other and Eliminations
Headquarters and Other Results of Operations
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Increase/
(Decrease)
|
|
Nine Months Ended
September 30,
|
|
Increase/
(Decrease)
|
(in millions)
|
2021
|
|
2020
|
|
|
%
|
|
2021
|
|
2020
|
|
%
|
Revenue
|
$
|
28
|
|
|
$
|
12
|
|
|
|
121.4
|
%
|
|
$
|
65
|
|
|
$
|
32
|
|
|
103.7
|
%
|
Operating costs and expenses
|
276
|
|
|
139
|
|
|
|
97.4
|
|
|
709
|
|
|
462
|
|
|
53.2
|
|
Adjusted EBITDA
|
$
|
(248)
|
|
|
$
|
(127)
|
|
|
|
(95.1)
|
%
|
|
$
|
(643)
|
|
|
$
|
(430)
|
|
|
(49.4)
|
%
|
Operating costs and expenses include overhead, personnel costs and costs associated with corporate initiatives.
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Increase/
(Decrease)
|
|
Nine Months Ended
September 30,
|
|
Increase/
(Decrease)
|
(in millions)
|
2021
|
|
2020
|
|
|
%
|
|
2021
|
|
2020
|
|
%
|
Revenue
|
$
|
(654)
|
|
|
$
|
(551)
|
|
|
|
18.4
|
%
|
|
$
|
(2,230)
|
|
|
$
|
(1,623)
|
|
|
37.3
|
%
|
Operating costs and expenses
|
(642)
|
|
|
(437)
|
|
|
|
45.6
|
|
|
(1,992)
|
|
|
(1,399)
|
|
|
42.2
|
|
Adjusted EBITDA
|
$
|
(12)
|
|
|
$
|
(114)
|
|
|
|
(88.9)
|
%
|
|
$
|
(238)
|
|
|
$
|
(224)
|
|
|
6.7
|
%
|
Amounts represent eliminations of transactions between our NBCUniversal segments, which are affected by the timing of recognition of content licenses between our Studios and Media segments. Current year amounts include the impact of a new licensing agreement for content that became exclusively available for streaming on Peacock during the first quarter of 2021, and prior year amounts include the impacts of initial licenses of content associated with the launch of Peacock.
For the three and nine months ended September 30, 2021, approximately 37% and 41%, respectively, of Studios segment content licensing revenue resulted from transactions with other segments, primarily with the Media segment. For the three and nine months ended September 30, 2020, approximately 39% and 35%, respectively, of Studios segment content licensing revenue resulted from transactions with other segments, primarily with the Media segment. Eliminations will increase or decrease to the extent that additional content is made available to our other segments. Refer to Note 2 for further discussion of transactions between our segments.
Sky Segment Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
Increase/
(Decrease)
|
|
|
Constant Currency Change(a)
|
|
Nine Months Ended
September 30,
|
|
Increase/
(Decrease)
|
|
Constant Currency Change(a)
|
(in millions)
|
2021
|
|
2020
|
|
|
|
%
|
|
|
%
|
|
2021
|
|
2020
|
|
%
|
|
%
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct-to-consumer
|
$
|
4,127
|
|
|
$
|
3,943
|
|
|
|
|
4.7
|
%
|
|
|
(0.1)
|
%
|
|
$
|
12,415
|
|
|
$
|
11,146
|
|
|
11.4
|
%
|
|
3.1
|
%
|
Content
|
300
|
|
|
388
|
|
|
|
|
(22.8)
|
|
|
|
(26.4)
|
|
|
1,013
|
|
|
947
|
|
|
7.0
|
|
|
(0.7)
|
|
Advertising
|
561
|
|
|
462
|
|
|
|
|
21.4
|
|
|
|
15.6
|
|
|
1,777
|
|
|
1,296
|
|
|
37.1
|
|
|
27.0
|
|
Total revenue
|
4,988
|
|
|
4,793
|
|
|
|
|
4.1
|
|
|
|
(0.7)
|
|
|
15,205
|
|
|
13,389
|
|
|
13.6
|
|
|
5.1
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and production
|
1,779
|
|
|
2,350
|
|
|
|
|
(24.3)
|
|
|
|
(27.2)
|
|
|
6,710
|
|
|
5,957
|
|
|
12.6
|
|
|
4.9
|
|
Direct network costs
|
647
|
|
|
530
|
|
|
|
|
22.2
|
|
|
|
14.7
|
|
|
1,903
|
|
|
1,485
|
|
|
28.1
|
|
|
17.6
|
|
Other
|
1,591
|
|
|
1,398
|
|
|
|
|
13.7
|
|
|
|
8.5
|
|
|
4,697
|
|
|
4,132
|
|
|
13.7
|
|
|
5.1
|
|
Total operating costs and expenses
|
4,016
|
|
|
4,278
|
|
|
|
|
(6.1)
|
|
|
|
(10.2)
|
|
|
13,310
|
|
|
11,574
|
|
|
15.0
|
|
|
6.6
|
|
Adjusted EBITDA
|
$
|
971
|
|
|
$
|
515
|
|
|
|
|
88.8
|
%
|
|
|
76.2
|
%
|
|
$
|
1,895
|
|
|
$
|
1,815
|
|
|
4.4
|
%
|
|
(4.3)
|
%
|
All percentages are calculated based on actual amounts. Minor differences may exist due to rounding.
(a)Constant currency 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 / (Losses)
|
|
September 30,
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
2021
|
|
2020
|
|
2021
|
2020
|
2021
|
|
2020
|
Total customer relationships
|
22,966
|
|
|
22,981
|
|
|
(233)
|
|
(21)
|
|
(259)
|
|
|
(299)
|
|
Customer metrics are presented based on actual amounts. Minor differences may exist due to rounding. Customer relationships represent the number of residential customers that subscribe to at least one of Sky’s four primary services of video, broadband, voice and wireless phone service. Sky reports commercial customers, including hotels, bars, workplaces and restaurants, generally based on the number of locations receiving our services. In the first quarter of 2021, we implemented conforming changes to our methodology for counting commercial customers in Italy and Germany, which are now counted as described above, consistent with customers in the United Kingdom. Previously these customers were counted based on a residential equivalent unit in Italy and the number of active venues or rooms in Germany. This change resulted in a reduction in Sky’s total customer relationships of 714,000 as of December 31, 2020. The impact of the change in methodology to customer relationship net additions for any period was not material. For comparative purposes, we have updated Sky’s historical total customer relationships and average monthly direct-to-consumer revenue per customer relationship to reflect this adjustment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Increase/
(Decrease)
|
Constant
Currency
Change(a)
|
|
Nine Months Ended
September 30,
|
|
Increase/
(Decrease)
|
Constant
Currency
Change(a)
|
|
2021
|
2020
|
|
%
|
%
|
|
2021
|
2020
|
|
%
|
%
|
Average monthly direct-to-consumer revenue per customer relationship
|
$
|
59.60
|
|
$
|
57.17
|
|
|
4.3
|
%
|
(0.5)
|
%
|
|
$
|
59.72
|
|
$
|
53.54
|
|
|
11.5
|
%
|
3.2
|
%
|
(a)Constant currency 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 average monthly direct-to-consumer revenue per customer relationship is useful in understanding the trends in our business across all of our direct-to-consumer service offerings.
Sky Segment – Revenue
Direct-to-Consumer
Revenue increased for the three and nine months ended September 30, 2021 compared to the same periods in 2020. Excluding the impact of foreign currency, revenue remained consistent with the prior year period for the three months ended September 30, 2021 primarily due to consistent average revenue per customer relationship and customer relationships. Average revenue per customer relationship was impacted by rate increases in the United Kingdom, which were offset by declines in Italy compared to the prior year periods. Customer relationships included increases in the United Kingdom, offset by decreases in Italy compared to the prior year periods. The declines in customer relationships and average revenue per customer relationship in Italy primarily resulted from reduced broadcast rights for Lega Nazionale Professionisti Serie A (“Serie A”), which we had held through the end of the 2020-2021 season. Beginning with the 2021-2022 season in the third quarter of 2021 and through the 2023-2024 season, we have nonexclusive broadcast rights to fewer matches, which has resulted and we expect will continue to result in declines in revenue and customer relationships in Italy.
Excluding the impact of foreign currency, revenue increased for the nine months ended September 30, 2021 primarily due to increased average revenue per customer relationship. Average revenue per customer relationship increased primarily due to rate increases in the United Kingdom and the impacts of COVID-19 in the prior year period, partially offset by a decline in Italy related to Serie A. Customer relationships remained consistent with the prior year period due to increases in the United Kingdom, offset by decreases in Italy compared to the prior year period.
Content
Revenue decreased for the three months ended September 30, 2021 compared to the same period in 2020. Excluding the impact of foreign currency, revenue decreased for the three months ended September 30, 2021 primarily due to sports programming licensing revenue, which included revenue for the Union of European Football Associations Champions League in Germany and Italy and Serie A in the prior year period, as well as the timing of sporting events compared to the prior year period due to COVID-19.
Revenue increased for the nine months ended September 30, 2021 compared to the same period in 2020. Excluding the impact of foreign currency, revenue remained consistent with the prior year period primarily due to lower revenue from sports programming licensing agreements in the current year period, offset by higher revenue from the distribution of Sky’s sports programming on third-party platforms due to the impacts of COVID-19 in the prior year period.
Advertising
Revenue increased for the three and nine months ended September 30, 2021 compared to the same periods in 2020. Excluding the impact of foreign currency, revenue increased primarily reflecting an overall market recovery compared to the prior year periods.
Sky Segment – Operating Costs and Expenses
Programming and production costs decreased for the three months ended September 30, 2021 compared to the same period in 2020. Excluding the impact of foreign currency, programming and production costs decreased for the three months ended September 30, 2021 primarily due to the timing of recognition of costs related to sporting events, including additional events in the prior year period due to COVID-19 and lower costs associated with Serie A in the current year period. Programming and production costs increased for the nine months ended September 30, 2021 compared to the same period in 2020. Excluding the impact of foreign currency, programming and production costs increased for the nine months ended September 30, 2021 primarily due to an increase in the number of sporting events in the current year period due to COVID-19, including the impacts of the delayed starts of the 2020-2021 European football seasons in the prior year period, partially offset by lower costs associated with Serie A in the current year period.
Direct network costs increased for the three and nine months ended September 30, 2021 compared to the same periods in 2020. Excluding the impact of foreign currency, direct network costs increased primarily due to increases in costs associated with Sky’s wireless phone and broadband services from increases in the sale of handsets and the number of customers receiving these services.
Other expenses increased for the three and nine months ended September 30, 2021 compared to the same periods in 2020. Excluding the impact of foreign currency, other expenses increased primarily due to higher fees paid to third-party channels related to advertising sales and higher marketing costs, reflecting the impact of COVID-19 in the prior year periods, as well as higher customer service costs in the current year periods, partially offset by lower personnel costs.
Corporate, Other and Eliminations
Corporate and Other Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Increase/
(Decrease)
|
|
Nine Months Ended
September 30,
|
|
Increase/
(Decrease)
|
|
(in millions)
|
2021
|
|
2020
|
|
|
%
|
|
2021
|
|
2020
|
|
%
|
|
Revenue
|
$
|
65
|
|
|
$
|
44
|
|
|
|
50.9
|
%
|
|
$
|
246
|
|
|
$
|
204
|
|
|
20.9
|
%
|
|
Operating costs and expenses
|
400
|
|
|
308
|
|
|
|
30.2
|
|
|
1,122
|
|
|
1,050
|
|
|
7.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
(335)
|
|
|
$
|
(264)
|
|
|
|
(26.8)
|
%
|
|
$
|
(876)
|
|
|
$
|
(846)
|
|
|
(3.6)
|
%
|
|
Corporate and Other – Revenue
Revenue primarily relates to Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania.
Corporate and Other – Operating Costs and Expenses
Operating costs and expenses primarily include overhead, personnel costs, the costs of other business initiatives, and operating costs and expenses associated with Comcast Spectacor.
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Increase/
(Decrease)
|
|
Nine Months Ended
September 30,
|
|
Increase/
(Decrease)
|
(in millions)
|
2021
|
|
2020
|
|
|
%
|
|
2021
|
|
2020
|
|
%
|
Revenue
|
$
|
(871)
|
|
|
$
|
(638)
|
|
|
|
36.6
|
%
|
|
$
|
(2,304)
|
|
|
$
|
(1,860)
|
|
|
24.0
|
%
|
Operating costs and expenses
|
(773)
|
|
|
(649)
|
|
|
|
19.2
|
|
|
(2,218)
|
|
|
(1,889)
|
|
|
17.5
|
|
Adjusted EBITDA
|
$
|
(98)
|
|
|
$
|
11
|
|
|
|
NM
|
|
$
|
(87)
|
|
|
$
|
29
|
|
|
NM
|
Amounts represent eliminations of transactions between Cable Communications, NBCUniversal, Sky and other businesses. Eliminations of transactions between NBCUniversal segments are presented separately. Current year amounts reflect an increase in eliminations associated with the Tokyo Olympics. Refer to Note 2 for a description of transactions between our segments.
Non-GAAP Financial Measures
Consolidated Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure and is the primary basis used to measure the operational strength and performance of our businesses as well as to assist in the evaluation of underlying trends in our businesses. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. It is also unaffected by our capital and tax structures, and by our investment activities, including the results of entities that we do not consolidate, as our management excludes these results when evaluating our operating performance. Our management and Board of Directors use this financial measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. Additionally, we believe that Adjusted EBITDA is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure of Adjusted EBITDA may not be directly comparable to similar measures used by other companies.
We define Adjusted EBITDA as net income attributable to Comcast Corporation before net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock, income tax expense, investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any. From time to time, we may exclude from Adjusted EBITDA the impact of certain events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance.
We reconcile consolidated Adjusted EBITDA to net income attributable to Comcast Corporation. This measure should not be considered a substitute for operating income, 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
September 30,
|
|
Nine Months Ended
September 30,
|
(in millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income attributable to Comcast Corporation
|
$
|
4,035
|
|
|
$
|
2,019
|
|
|
$
|
11,102
|
|
|
$
|
7,154
|
|
Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock
|
(104)
|
|
|
12
|
|
|
(249)
|
|
|
110
|
|
Income tax expense
|
1,235
|
|
|
739
|
|
|
4,354
|
|
|
2,385
|
|
Investment and other (income) loss, net
|
(766)
|
|
|
86
|
|
|
(2,374)
|
|
|
382
|
|
Interest expense
|
1,050
|
|
|
1,220
|
|
|
3,161
|
|
|
3,544
|
|
Depreciation
|
2,177
|
|
|
2,122
|
|
|
6,407
|
|
|
6,328
|
|
Amortization
|
1,301
|
|
|
1,198
|
|
|
3,815
|
|
|
3,520
|
|
|
|
|
|
|
|
|
|
Adjustments(a)
|
30
|
|
|
187
|
|
|
79
|
|
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
8,957
|
|
|
$
|
7,583
|
|
|
$
|
26,297
|
|
|
$
|
23,640
|
|
(a)Amounts represent the impacts of certain events, gains, losses or other charges that are excluded from Adjusted EBITDA, including Sky transaction-related costs and costs related to our investment portfolio. Amounts for the three and nine months ended September 30, 2020 include $177 million related to a legal settlement.
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
Actual
|
|
Constant Currency
|
|
Constant Currency Change
|
|
Actual
|
|
Constant Currency
|
|
Constant Currency Change
|
(in millions, except per customer data)
|
2021
|
|
2020
|
|
%
|
|
2021
|
|
2020
|
|
%
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Direct-to-consumer
|
$
|
4,127
|
|
|
$
|
4,131
|
|
|
(0.1)
|
%
|
|
$
|
12,415
|
|
|
$
|
12,044
|
|
|
3.1
|
%
|
Content
|
300
|
|
|
407
|
|
|
(26.4)
|
|
|
1,013
|
|
|
1,021
|
|
|
(0.7)
|
|
Advertising
|
561
|
|
|
485
|
|
|
15.6
|
|
|
1,777
|
|
|
1,399
|
|
|
27.0
|
|
Total revenue
|
4,988
|
|
|
5,023
|
|
|
(0.7)
|
|
|
15,205
|
|
|
14,464
|
|
|
5.1
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
Programming and production
|
1,779
|
|
|
2,442
|
|
|
(27.2)
|
|
|
6,710
|
|
|
6,398
|
|
|
4.9
|
|
Direct network costs
|
647
|
|
|
564
|
|
|
14.7
|
|
|
1,903
|
|
|
1,618
|
|
|
17.6
|
|
Other
|
1,591
|
|
|
1,466
|
|
|
8.5
|
|
|
4,697
|
|
|
4,468
|
|
|
5.1
|
|
Total operating costs and expenses
|
4,016
|
|
|
4,472
|
|
|
(10.2)
|
|
|
13,310
|
|
|
12,484
|
|
|
6.6
|
|
Adjusted EBITDA
|
$
|
971
|
|
|
$
|
551
|
|
|
76.2
|
%
|
|
$
|
1,895
|
|
|
$
|
1,981
|
|
|
(4.3)
|
%
|
Average monthly direct-to-consumer revenue per customer relationship
|
$
|
59.60
|
|
|
$
|
59.89
|
|
|
(0.5)
|
%
|
|
$
|
59.72
|
|
|
$
|
57.86
|
|
|
3.2
|
%
|
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 revolving credit facility; and our ability to obtain future external financing.
We maintain significant availability under our revolving credit facility and commercial paper program to meet our short-term liquidity requirements. As of September 30, 2021, amounts available under our revolving credit facility, net of amounts outstanding under our commercial paper program and outstanding letters of credit and bank guarantees, totaled $11.0 billion. We entered into a new revolving credit facility in March 2021 (see Note 5).
We are subject to customary covenants and restrictions set forth in agreements related to debt issued at Comcast and certain of our subsidiaries, including the indentures governing our public debt securities and the credit agreements governing our revolving credit facility. Our credit facility contains a financial covenant pertaining to leverage, which is the ratio of debt to EBITDA, as defined in the revolving credit facility. Compliance with this financial covenant is tested on a quarterly basis under the terms of the revolving credit facility. As of September 30, 2021, we met this financial covenant by a significant margin and we would expect to remain in compliance with this financial covenant and other covenants related to our debt. The covenants and restrictions in our revolving credit facility do not apply to certain entities, including Sky and our international theme parks.
Operating Activities
Components of Net Cash Provided by Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
(in millions)
|
2021
|
|
2020
|
Operating income
|
$
|
15,996
|
|
|
$
|
13,575
|
|
Depreciation and amortization
|
10,222
|
|
|
9,848
|
|
Noncash share-based compensation
|
1,019
|
|
|
922
|
|
Changes in operating assets and liabilities
|
(1,057)
|
|
|
361
|
|
Payments of interest
|
(2,943)
|
|
|
(2,845)
|
|
Payments of income taxes
|
(2,201)
|
|
|
(2,298)
|
|
Other
|
420
|
|
|
132
|
|
Net cash provided by operating activities
|
$
|
21,457
|
|
|
$
|
19,695
|
|
The variance in changes in operating assets and liabilities for the nine months ended September 30, 2021 compared to the same period in 2020 was primarily related to the timing of amortization and related payments for our film and television costs, including increased production spend partially offset by the timing of sporting events, as well as increases in accounts receivable and decreases in deferred revenue, which included the impacts of our broadcast of the Tokyo Olympics in the third quarter of 2021.
In March 2021, we entered into an agreement with the NFL extending our rights for an additional 11 years through the 2033-2034 season. The new agreement includes exhibition rights for three additional Super Bowls and certain other rights, including streaming rights and additional exclusive games on Peacock.
The decrease in income tax payments for the nine months ended September 30, 2021 compared to the same period in 2020 was primarily due to tax deductions resulting from our senior notes exchange (refer to “Financing Activities” below for additional information), which reduced tax payments by $0.7 billion in the third quarter of 2021 and more than offset the higher taxable income from operations in 2021.
Investing Activities
Net cash used in investing activities for both the nine months ended September 30, 2021 and 2020 consisted primarily of capital expenditures, cash paid for intangible assets and the construction of Universal Beijing Resort, which were partially offset by proceeds from sales of businesses and investments. Capital expenditures decreased for the nine months ended September 30, 2021 compared to the same period in 2020 primarily due to reduced spending at our Theme Parks, partially offset by increased spending at our Cable Communications segment related to scalable infrastructure and line extensions. Proceeds from sales of businesses and investments decreased for the nine months ended September 30, 2021 compared to the same period in 2020 primarily due to the sale of our investment in AirTouch in the prior year period.
Financing Activities
Net cash used in financing activities for the nine months ended September 30, 2021 consisted primarily of repayments of debt and the related early redemption payments presented in other financing activities, dividend payments, repurchases of common stock under our share repurchase program and employee plans and payments related to the redemption of NBCUniversal Enterprise redeemable subsidiary preferred stock presented in other financing activities, partially offset by proceeds from borrowings. Net cash used in financing activities for the nine months ended September 30, 2020 consisted primarily of repayments of debt and the related early redemption payments presented in other financing activities, dividend payments and payments related to the redemption and repayment of subsidiary preferred shares presented in other financing activities, which were partially offset by proceeds from borrowings and proceeds from the settlement of cross-currency swaps related to our debt presented in other financing activities.
In August 2021, we completed a debt exchange transaction. We issued $15.0 billion aggregate principal amount of new senior notes, which have maturities ranging from 2051 to 2063 and a weighted average interest rate of 2.93%, and made cash payments of $0.5 billion in exchange for $11.2 billion aggregate principal amount of certain series of outstanding senior notes with maturities ranging from 2033 to 2058 and a weighted average interest rate of 5.04%. The debt exchange transaction was accounted for as a debt modification, and therefore following the exchange, the book value of the new senior notes is equal to the book value of the exchanged senior notes reduced by the amount of the cash payments, and the difference between the principal and carrying amounts of the new senior notes will accrue through interest expense over the period to maturity of the new senior notes.
In September 2021, we issued €1.75 billion ($2.1 billion using exchange rates on the date of issuance) aggregate principal amount of fixed-rate Euro senior notes maturing in 2026 and 2029.
For the nine months ended September 30, 2021, we made debt repayments totaling $9.0 billion, including $4.9 billion of optional repayments of term loans due 2022 to 2023 and the early redemption of $1.3 billion of senior notes maturing in 2024, as well as amounts due at maturity and the cash payments in the debt exchange transaction.
As of September 30, 2021, we had no commercial paper outstanding and there were no amounts outstanding under our revolving credit facility.
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 5 and 6 for additional information on our financing activities.
Share Repurchases and Dividends
In the second quarter of 2021, we restarted our share repurchase program. Effective May 25, 2021, our Board of Directors increased our share repurchase program authorization to $10 billion, which does not have an expiration date. During the nine months ended September 30, 2021, we repurchased a total of 34.7 million shares of our Class A common stock for $2.0 billion. Under the authorization, we expect to repurchase additional shares during the remainder of 2021, which may be in the open market or in private transactions.
In addition, we paid $620 million for the nine months ended September 30, 2021 related to employee taxes associated with the administration of our share-based compensation plans.
In January 2021, our Board of Directors approved a 9% increase in our dividend to $1.00 per share on an annualized basis. On July 28, 2021, we paid dividends of $1.2 billion. In July 2021, our Board of Directors approved our third quarter dividend of $0.25 per share, which was paid in October 2021. We expect to continue to pay quarterly dividends, although each dividend is subject to approval by our Board of Directors.
Guarantee Structure
Our debt is primarily issued at Comcast, although we also have debt at certain of our subsidiaries as a result of acquisitions and other issuances. A substantial amount of this debt is subject to guarantees by Comcast and by certain subsidiaries that we have put in place to simplify our capital structure. We believe this guarantee structure provides liquidity benefits to debt investors and helps to simplify credit analysis with respect to relative value considerations of guaranteed subsidiary debt.
Debt and Guarantee Structure
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(in billions)
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September 30, 2021
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December 31, 2020
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Debt subject to cross-guarantees
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Comcast
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$
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88.4
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$
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85.7
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NBCUniversal(a)
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1.6
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2.8
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Comcast Cable(a)
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2.1
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2.1
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92.1
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90.6
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Debt subject to one-way guarantees
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Sky
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6.4
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8.4
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Other(a)
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0.1
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2.8
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6.5
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11.2
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Debt not guaranteed
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Universal Beijing Resort(b)
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3.4
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2.5
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Other
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1.1
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1.1
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4.5
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3.6
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Debt issuance costs, premiums, discounts, fair value adjustments for acquisition accounting and hedged positions, net
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(5.9)
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(1.6)
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Total debt
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$
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97.2
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$
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103.8
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(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 6 for additional information.
Cross-guarantees
Comcast, NBCUniversal and Comcast Cable (the “Guarantors”) fully and unconditionally, jointly and severally, guarantee each other’s debt securities. NBCUniversal and Comcast Cable also guarantee other borrowings of Comcast, including its revolving credit facility. These guarantees rank equally with all other general unsecured and unsubordinated obligations of the respective Guarantors. However, the obligations of the Guarantors under the guarantees are structurally subordinated to the indebtedness and other liabilities of their respective non-guarantor subsidiaries. The obligations of each Guarantor are limited to the maximum amount that would not render such Guarantor’s obligations subject to avoidance under applicable fraudulent conveyance provisions of U.S. and non-U.S. law. Each Guarantor’s obligations will remain in effect until all amounts payable with respect to the guaranteed securities have been paid in full. However, a guarantee by NBCUniversal or Comcast Cable of Comcast’s debt securities, or by NBCUniversal of Comcast Cable’s debt securities, will terminate upon a disposition of such Guarantor entity or all or substantially all of its assets.
The Guarantors are each holding companies that principally hold investments in, borrow from and lend to non-guarantor subsidiary operating companies; issue and service third-party debt obligations; repurchase shares and pay dividends; and engage in certain corporate and headquarters activities. The Guarantors are generally dependent on non-guarantor subsidiary operating companies to fund these activities.
As of September 30, 2021 and December 31, 2020, the combined Guarantors have noncurrent notes payable to non-guarantor subsidiaries of $125 billion and $124 billion, respectively, and noncurrent notes receivable from non-guarantor subsidiaries of $30 billion and $26 billion, respectively. This financial information is that of the Guarantors presented on a combined basis with intercompany balances between the Guarantors eliminated. The combined financial information excludes financial information of non-guarantor subsidiaries. The underlying net assets of the non-guarantor subsidiaries are significantly in excess of the Guarantor obligations. Excluding investments in non-guarantor subsidiaries, external debt and the noncurrent notes payable and receivable with non-guarantor subsidiaries, the Guarantors do not have material assets, liabilities or results of operations.
One-way Guarantees
Comcast provides full and unconditional guarantees of certain debt issued by Sky and other consolidated subsidiaries not subject to the periodic reporting requirements of the SEC.
Comcast also provides a full and unconditional guarantee of $138 million principal amount of subordinated debt issued by Comcast Holdings. Comcast’s obligations under this guarantee are subordinated and subject, in right of payment, to the prior payment in full of all of Comcast’s senior indebtedness, including debt guaranteed by Comcast on a senior basis; and are structurally subordinated to the indebtedness and other liabilities of its non-guarantor subsidiaries (for purposes of this Comcast Holdings discussion, Comcast Cable and NBCUniversal are included within the non-guarantor subsidiary group). Comcast’s obligations as guarantor will remain in effect until all amounts payable with respect to the guaranteed debt have been paid in full. However, the guarantee will terminate upon a disposition of Comcast Holdings or all or substantially all of its assets. Comcast Holdings is a consolidated subsidiary holding company that directly or indirectly holds 100% and approximately 37% of our equity interests in Comcast Cable and NBCUniversal, respectively.
As of September 30, 2021 and December 31, 2020, Comcast and Comcast Holdings, the combined issuer and guarantor of the guaranteed subordinated debt, have noncurrent senior notes payable to non-guarantor subsidiaries of $95 billion and $94 billion, respectively, and noncurrent notes receivable from non-guarantor subsidiaries of $29 billion and $23 billion, respectively. This financial information is that of Comcast and Comcast Holdings presented on a combined basis with intercompany balances between Comcast and Comcast Holdings eliminated. The combined financial information excludes financial information of non-guarantor subsidiaries of Comcast and Comcast Holdings. The underlying net assets of the non-guarantor subsidiaries of Comcast and Comcast Holdings are significantly in excess of the obligations of Comcast and Comcast Holdings. Excluding investments in non-guarantor subsidiaries, external debt and the noncurrent notes payable and receivable with non-guarantor subsidiaries, Comcast and Comcast Holdings do not have material assets, liabilities or results of operations.
Critical Accounting Judgments and Estimates
The preparation of our 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.
Following the change in presentation of our segment operating results in the first quarter of 2021, we reassessed the reporting units related to goodwill in our NBCUniversal segments and concluded that our reporting units are the same as our reportable segments. See Note 2 for additional information.
We believe our judgments and related estimates associated with the valuation and impairment testing of goodwill and cable franchise rights and the accounting for film and television costs are critical in the preparation of our condensed consolidated financial statements. We performed our annual impairment testing of goodwill and cable franchise rights as of July 1, 2021 and no impairment was required. Our impairment testing consisted of qualitative assessments for our cable franchise rights and goodwill in our Cable Communications and NBCUniversal segments, and a quantitative assessment for goodwill in our Sky segment. The goodwill in our Sky segment resulted from our acquisition of Sky in the fourth quarter of 2018. Given this was a recent transaction, the fair value is in close proximity to the carrying value of the Sky reporting unit.
Changes in market conditions, laws and regulations, and key assumptions made in future quantitative assessments, including expected cash flows, competitive factors and discount rates, could negatively impact the results of future impairment testing and could result in the recognition of an impairment charge.
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 2020 Annual Report on Form 10-K.