COMCAST CORPORATION
Table 1
Condensed Consolidated Statement of Operations (Unaudited)
(amounts in millions, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
Revenues $4,742 $3,000 $18,348 $8,102
Operating, selling, general and
administrative expenses 3,022 2,095 11,956 5,266
Operating cash flow 1,720 905 6,392 2,836
Depreciation and amortization 978 824 4,438 1,915
Operating Income 742 81 1,954 921
Interest Expense (439) (335) (2,018) (870)
Investment income (loss), net 334 159 (84) (543)
Other income (expense), net (27) 5 11 (62)
(132) (171) (2,091) (1,475)
Income (Loss) from Continuing
Operations before 610 (90) (137) (554)
Income Taxes and Minority Interest
Income tax benefit (expense) (215) 5 16 128
Minority interest (12) (20) (97) (43)
Income (Loss) from Continuing
Operations 383 (105) (218) (469)
Income from discontinued operations,
net of tax (1) - 54 168 195
Gain on discontinued operations, net
of tax (1) - - 3,290 -
Net Income (Loss) $383 ($51) $3,240 ($274)
Basic and Diluted earnings (loss) per
common share
Income (loss) from continuing
operations $0.17 ($0.07) ($0.10) ($0.42)
Income from discontinued
operations - 0.04 0.08 0.17
Gain on discontinued operations - - 1.46 -
Net income (loss) per common share $0.17 ($0.03) $1.44 ($0.25)
Basic weighted average number of
common shares outstanding 2,258 1,583 2,256 1,110
Diluted weighted average number of
common shares outstanding 2,269 1,583 2,256 1,110
(1) On September 17, 2003 the Company completed the sale of its
approximate 57% interest in QVC, Inc. Accordingly, the results have
been presented as discontinued operations.
COMCAST CORPORATION
TABLE 2
Condensed Consolidated Balance Sheet (Unaudited)
(dollars in millions)
December 31, 2003 December 31, 2002
ASSETS
CURRENT ASSETS
Cash and cash equivalents $1,550 $505
Investments 2,493 3,258
Accounts receivable, net 907 862
Other current assets 453 380
Current assets of
discontinued operations and
assets held for sale - 2,094
Total current assets 5,403 7,099
INVESTMENTS 14,818 15,174
PROPERTY AND EQUIPMENT, NET 18,473 18,381
FRANCHISE RIGHTS AND GOODWILL 65,891 64,784
OTHER NONCURRENT ASSETS - including
other intangible assets, net 4,574 6,095
NONCURRENT ASSETS OF DISCONTINUED
OPERATIONS - 1,595
$109,159 $113,128
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable, accrued
expenses and other current
liabilities $6,493 $7,637
Short-term debt and current
portion of long-term debt 734 5,398
Current portion of
exchangeable debt 2,427 1,555
Current liabilities of
discontinued operations - 816
Total current liabilities 9,654 15,406
LONG-TERM DEBT, less current
portion 21,944 24,052
LONG-TERM EXCHANGEABLE DEBT, less
current portion 1,891 3,904
OTHER NONCURRENT LIABILITIES AND
MINORITY INTEREST 34,008 30,514
NONCURRENT LIABILITIES AND MINORITY
INTEREST OF DISCONTINUED OPERATIONS - 923
STOCKHOLDERS' EQUITY 41,662 38,329
$109,159 $113,128
COMCAST CORPORATION
TABLE 3
Condensed Consolidated Statement of Cash Flows (Unaudited)
(dollars in millions)
Twelve Months Ended
December 31,
2003 2002
OPERATING ACTIVITIES
Net cash provided by operating
activities from continuing operations $2,854 $2,421
FINANCING ACTIVITIES
Proceeds from borrowings 9,398 8,759
Retirements and repayments of debt (16,465) (9,508)
Other, net 19 (256)
Net cash used in financing activities
from continuing operations (7,048) (1,005)
INVESTING ACTIVITIES
Capital expenditures (4,161) (1,852)
Proceeds from restructuring of TWE
investment 2,100 -
Proceeds from sales of investments 1,871 1,263
Proceeds from sales of Liberty Notes 4,000 -
Proceeds from sale of discontinued
operations and assets
held for sale 1,875 -
Other, net (446) (536)
Net cash provided by (used in)
investing activities from
continuing operations 5,239 (1,125)
INCREASE IN CASH AND CASH EQUIVALENTS 1,045 291
CASH AND CASH EQUIVALENTS, beginning
of period 505 214
CASH AND CASH EQUIVALENTS, end of
period $1,550 $505
COMCAST CORPORATION
TABLE 4
Pro Forma Financial Data by Business Segment (Unaudited) (1)
(dollars in millions)
Corporate and
Other
Cable(2) Content (3) Total
Three Months Ended December 31, 2003
Revenues $4,507 $250 ($15) $4,742
Operating Cash Flow $1,712 $58 ($50) $1,720
Operating Income (Loss) $788 $21 ($67) $742
Operating Cash Flow Margin 38.0% 23.1% NM 36.3%
Capital Expenditures (7) $1,052 $9 $7 $1,068
Three Months Ended December 31, 2002
Revenues $4,149 $220 ($12) $4,357
Operating Cash Flow (4) $1,048 $47 ($43) $1,052
Operating Income (Loss) ($143) $8 ($58) ($193)
Operating Cash Flow Margin (4) 25.3% 21.3% NM 24.2%
Capital Expenditures (6) $1,451 $5 $9 $1,465
Twelve Months Ended December 31, 2003
Revenues $17,491 $885 ($29) $18,347
Operating Cash Flow $6,350 $227 ($185) $6,392
Operating Income (Loss) $2,127 $82 ($255) $1,954
Operating Cash Flow Margin 36.3% 25.6% NM 34.8%
Capital Expenditures (7) $4,097 $23 $41 $4,161
Twelve Months Ended December 31, 2002
Revenues $16,037 $767 ($37) $16,767
Operating Cash Flow (4) $4,469 $192 ($158) $4,503
Operating Income (Loss) (5) ($16,468) $45 ($256) ($16,679)
Operating Cash Flow Margin (4) 27.9% 25.0% NM 26.9%
Capital Expenditures (6) $5,240 $18 $20 $5,278
(1) See Non-GAAP and Other Financial Measures in Table 7. Historical
financial data by business segment, as required under generally
accepted accounting principles, is available in the Company's annual
report on Form 10-K.
(2) Pro forma financial data includes the results of AT&T Broadband
acquired in November 2002 (acquired systems). Pro forma financial data
excludes the results of the 314,000 cable subscribers sold to Bresnan
Communications in March 2003 and excludes the results of the net
reduction of 16,000 subscribers associated with the cable system
exchange with Insight Communications in February 2003.
(3) Corporate and Other includes the Company's domestic wireline
telecommunications business, international wireless operations,
Corporate and elimination entries.
(4) Included for the three months ended December 31, 2002 are acquisition
and employee termination related costs of $130 million incurred by
AT&T prior to the acquisition of AT&T Broadband by Comcast and $7 to
$10 million of acquisition related costs incurred by Comcast in
connection with the AT&T Broadband acquisition. Included for the year
ended December 31, 2002 are acquisition and employee termination
related costs of $425 million incurred by AT&T prior to the
acquisition of AT&T Broadband by Comcast and $15 to $20 million of
acquisition related costs incurred by Comcast in connection with the
AT&T Broadband acquisition.
(5) Includes $16.525 billion impairment charge related to the write down
of goodwill and cable franchise rights by AT&T prior to the
acquisition of AT&T Broadband by Comcast.
(6) For acquired systems, includes capital expenditures made since January
1, 2002.
(7) Our Cable segment's capital expenditures are comprised of the
following categories:
YTD
4Q03 12/31/03
Customer Premise Equipment (CPE) $425 $1,573
Scalable Infrastructure 123 350
Line Extensions 78 251
Upgrades 279 1,414
Support Capital 147 509
Total $1,052 $4,097
CPE includes costs incurred at the customer residence to secure new
customers, revenue units and additional bandwidth revenues (e.g. digital
converters). Scalable infrastructure includes costs, not CPE or network
related, to secure growth of new customers, revenue units and additional
bandwidth revenues or provide service enhancements (e.g. headend
equipment). Line extensions include network costs associated with entering
new service areas (e.g. fiber/coaxial cable). Upgrades include costs to
enhance or replace existing fiber/coaxial cable networks, including
recurring betterments. Support capital includes costs associated with the
replacement or enhancement of non-network assets due to obsolescence and
wear out (e.g. non-network equipment, land, buildings and vehicles).
COMCAST CORPORATION
TABLE 5
Pro Forma Data - Cable Segment Components (Unaudited) (1) (2)
(dollars in millions, except average revenue per basic subscriber data)
Historical
Systems (3) Acquired Systems(3) Total
2003 2002 2003 2002 2003 2002
Three Months Ended
December 31
Revenues:
Video (4) $1,266 $1,193 $1,792 $1,687 $3,058 $2,880
High-Speed Internet 262 175 367 259 629 434
Phone 7 6 176 218 183 224
Advertising 121 109 194 188 315 297
Other (5) 66 66 101 106 167 172
Franchise Fees 54 51 101 91 155 142
Total Revenues $1,776 $1,600 $2,731 $2,549 $4,507 $4,149
Average Total
Revenue per Basic
Subscriber $69.33 $62.64 $70.59 $66.50 $70.09 $64.87
Average Video
Revenue per Basic
Subscriber $49.37 $46.71 $46.35 $44.00 $47.55 $45.08
Operating Cash Flow
(6) $758 $645 $954 $403 $1,712 $1,048
Operating Income
(Loss) $411 $132 $377 ($275) $788 ($143)
Operating Cash Flow
Margin (6) 42.7% 40.3% 34.9% 15.8% 38.0% 25.3%
Capital Expenditures
(8) $310 $306 $742 $1,145 $1,052 $1,451
Operating Cash Flow
(Deficit), Net of
Capital
Expenditures $448 $339 $212 ($742) $660 ($403)
Historical
Systems (3) Acquired Systems(3) Total
2003 2002 2003 2002 2003 2002
Twelve Months Ended
December 31
Revenues:
Video (4) $5,001 $4,708 $7,095 $6,752 $12,096 $11,460
High-Speed Internet 939 590 1,316 896 2,255 1,486
Phone 24 24 777 794 801 818
Advertising 425 383 687 653 1,112 1,036
Other (5) 255 250 364 417 619 667
Franchise Fees 211 203 397 367 608 570
Total Revenues $6,855 $6,158 $10,636 $9,879 $17,491 $16,037
Average Total
Revenue per Basic
Subscriber $66.89 $60.35 $69.05 $63.63 $68.18 $62.16
Average Video
Revenue per Basic
Subscriber $48.79 $46.16 $46.07 $43.47 $47.15 $44.54
Programming Expenses $3,909 $3,822
Operating Cash Flow
(6) $2,913 $2,542 $3,437 $1,927 $6,350 $4,469
Operating Income
(Loss) (7) $1,609 $1,128 $518 ($17,596) $2,127 ($16,468)
Operating Cash Flow
Margin (6) 42.5% 41.3% 32.3% 19.5% 36.3% 27.9%
Capital Expenditures
(8) $1,319 $1,317 $2,778 $3,923 $4,097 $5,240
Operating Cash Flow
(Deficit), Net of
Capital
Expenditures $1,594 $1,225 $659 ($1,996) $2,253 ($771)
(1) See Non-GAAP and Other Financial Measures in Table 7.
(2) Pro forma financial data includes the results of AT&T Broadband
acquired in November 2002 (acquired systems). Pro forma financial data
excludes the results of the 314,000 cable subscribers sold to Bresnan
Communications in March 2003 and excludes the results of the net
reduction of 16,000 subscribers associated with the cable systems
exchange with Insight Communications in February 2003.
(3) Historical systems represent those cable businesses operated by the
Company prior to the acquisition of AT&T Broadband. The acquired
systems represent those cable businesses acquired from AT&T.
(4) Video revenues consist of our basic, expanded basic, premium, pay-per-
view, equipment and digital services.
(5) Other revenues include installation revenues, guide revenues,
commissions from electronic retailing, other product offerings and
revenues of our digital media center and regional sports programming
networks.
(6) Included for the three months ended December 31, 2002 are acquisition
and employee termination related costs of $130 million incurred by
AT&T prior to the acquisition of AT&T Broadband by Comcast and $7 to
$10 million of acquisition related costs incurred by Comcast in
connection with the AT&T Broadband acquisition. Included for the year
ended December 31, 2002 are acquisition and employee termination
related costs of $425 million incurred by AT&T prior to the
acquisition of AT&T Broadband by Comcast and $15 to $20 million of
acquisition related costs incurred by Comcast in connection with the
AT&T Broadband acquisition.
(7) Includes $16.525 billion impairment charge related to the write down
of goodwill and cable franchise rights by AT&T prior to the
acquisition of AT&T Broadband by Comcast.
(8) For acquired systems, includes capital expenditures made
since January 1, 2002.
COMCAST CORPORATION
TABLE 6
Pro Forma Data - Cable Segment (Unaudited) (1) (2)
Historical Systems (3)
4Q03 3Q03 4Q02
Cable
Homes Passed (000's) 14,500 14,400 14,200
Subscribers (000's) 8,568.8 8,514.6 8,545.4
Penetration 59.0% 58.9% 60.2%
Quarterly Net Subscriber Additions
(000's) 54.2 (21.9) 40.6
Digital Cable
"Digital Ready" Subscribers (000's) 8,568.8 8,514.6 8,545.4
Subscribers (000's) 2,679.5 2,550.2 2,246.3
Penetration 31.3% 30.0% 26.3%
Quarterly Net Subscriber Additions
(000's) 129.3 132.6 132.8
Monthly Average Revenue per
Subscriber $15.25 $15.08 $15.00
High-Speed Internet
"Available" Homes (000's) 13,905.6 13,631.1 12,611.3
Subscribers (000's) 2,226.2 2,072.0 1,526.0
Penetration 16.0% 15.2% 12.1%
Quarterly Net Subscriber Additions
(000's) 154.2 190.2 187.2
Monthly Average Revenue per
Subscriber $40.58 $41.22 $40.78
Phone
"Available" Homes (000's) 462.4 453.7 273.8
Subscribers (000's) 38.9 39.4 39.5
Penetration 8.4% 8.7% 14.4%
Quarterly Net Subscriber Additions
(000's) (0.5) 0.9 0.8
Monthly Average Revenue per
Subscriber $50.13 $51.19 $55.61
Total Revenue Generating Units
(000's) (4) 13,513.4 13,176.2 12,357.2
Acquired Systems (3)
4Q03 3Q03 4Q02
Cable
Homes Passed (000's) 25,300 25,300 25,000
Subscribers (000's) 12,899.2 12,883.4 12,782.0
Penetration 51.0% 50.9% 51.1%
Quarterly Net Subscriber Additions
(000's) 15.8 22.7 (49.9)
Digital Cable
"Digital Ready" Subscribers (000's) 12,899.2 12,883.4 12,782.0
Subscribers (000's) 4,977.3 4,723.2 4,377.9
Penetration 38.6% 36.7% 34.3%
Quarterly Net Subscriber Additions
(000's) 254.1 185.7 254.3
Monthly Average Revenue per
Subscriber $15.25 $15.10 $14.21
High-Speed Internet
"Available" Homes (000's) 20,825.5 19,803.7 17,460.5
Subscribers (000's) 3,057.7 2,789.0 2,094.4
Penetration 14.7% 14.1% 12.0%
Quarterly Net Subscriber Additions
(000's) 268.7 282.5 179.8
Monthly Average Revenue per
Subscriber $41.88 $43.02 $43.09
Phone
"Available" Homes (000's) 8,951.9 8,928.7 8,438.4
Subscribers (000's) 1,228.0 1,272.4 1,398.9
Penetration 13.7% 14.3% 16.6%
Quarterly Net Subscriber Additions
(000's) (44.4) (55.6) 76.0
Monthly Average Revenue per
Subscriber $47.04 $46.87 $53.33
Total Revenue Generating Units
(000's) (4) 22,162.2 21,668.0 20,653.2
Total
4Q03 3Q03 4Q02
Cable
Homes Passed (000's) 39,800 39,700 39,200
Subscribers (000's) 21,468.0 21,398.0 21,327.4
Penetration 53.9% 53.8% 54.4%
Quarterly Net Subscriber Additions
(000's) 70.0 0.8 (9.3)
Digital Cable
"Digital Ready" Subscribers (000's) 21,468.0 21,398.0 21,327.4
Subscribers (000's) 7,656.8 7,273.4 6,624.2
Penetration 35.7% 34.0% 31.1%
Quarterly Net Subscriber Additions
(000's) 383.4 318.3 387.1
Monthly Average Revenue per
Subscriber $15.25 $15.09 $14.48
High-Speed Internet
"Available" Homes (000's) 34,731.1 33,434.8 30,071.8
Subscribers (000's) 5,283.9 4,861.0 3,620.4
Penetration 15.2% 14.5% 12.0%
Quarterly Net Subscriber Additions
(000's) 422.9 472.7 367.0
Monthly Average Revenue per
Subscriber $41.33 $42.25 $42.13
Phone
"Available" Homes (000's) 9,414.3 9,382.4 8,712.2
Subscribers (000's) 1,266.9 1,311.8 1,438.4
Penetration 13.5% 14.0% 16.5%
Quarterly Net Subscriber Additions
(000's) (44.9) (54.7) 76.8
Monthly Average Revenue per
Subscriber $47.13 $46.99 $53.40
Total Revenue Generating Units
(000's) (4) 35,675.6 34,844.2 33,010.4
(1) See Non-GAAP and Other Financial Measures in Table 7.
(2) Pro forma financial data includes the results of AT&T Broadband
acquired in November 2002 (acquired systems). Pro forma financial
data excludes the results of the 314,000 cable subscribers sold to
Bresnan Communications in March 2003 and excludes the results of the
net reduction of 16,000 subscribers associated with the cable system
exchange with Insight Communications in February 2003. Pro forma
subscriber data includes 6,100 subscribers acquired from Telemedia,
Inc. in June 2003, 16,600 subscribers acquired from ATM in July 2003
and 16,000 subscribers acquired from Millennium Inc. in September
2003.
(3) Historical systems represent those cable businesses operated by
the Company prior to the acquisition of AT&T Broadband. The acquired
systems represent those cable businesses acquired from AT&T.
(4) The sum total of all primary analog video, digital video, high-
speed Internet and phone customers, but excluding additional outlets.
TABLE 7
Non-GAAP and Other Financial Measures
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Prior to the first quarter of 2003, we described the performance measure,
operating income before depreciation and amortization, as Operating Cash Flow.
In the first quarter of 2003, we referred to the same measure as EBITDA
(earnings before interest, taxes, depreciation and amortization) in response
to new guidance on Non-GAAP measures provided by the SEC in Regulation G and
amendments to Item 10 of Regulation S-K. In the second quarter, we reverted
back to describing this measure as Operating Cash Flow based on additional
guidance provided by the SEC staff. This is only a change in terminology. We
have not changed the calculation of this measure.
Operating Cash Flow is the primary basis used to measure the operational
strength and performance of our businesses. Free Cash Flow is an additional
performance measure used as an indicator of our ability to service debt and
make strategic investments. We use Debt Excluding Exchangeables as a measure
of debt that will require cash from future operations or financings. We also
adjust certain historical data on a pro forma basis following significant
acquisitions or dispositions to enhance comparability.
Operating Cash Flow is defined as operating income before depreciation and
amortization and impairment charges, if any, related to fixed and intangible
assets and gains or losses from the sale of assets, if any. As such, it
eliminates the significant level of non-cash depreciation and amortization
expense that results from the capital intensive nature of our businesses and
intangible assets recognized in business combinations, and is unaffected by
our capital structure or investment activities. Our management and Board of
Directors use this measure in evaluating our consolidated operating
performance and the operating performance of all of our operating segments.
This metric is used to allocate resources and capital to our operating
segments and is a significant component of our annual incentive compensation
programs. We believe that Operating Cash Flow is also useful to investors as
it is one of the bases for comparing our operating performance with other
companies in our industries, although our measure of Operating Cash Flow may
not be directly comparable to similar measures used by other companies.
As Operating Cash Flow is the measure of our segment profit or loss, we
reconcile it to operating income, the most directly comparable financial
measure calculated and presented in accordance with Generally Accepted
Accounting Principles (GAAP), in the business segment footnote of our
quarterly and annual financial statements. Therefore, we believe our measure
of Operating Cash Flow for our business segments is not a "non-GAAP financial
measure" as contemplated by Regulation G adopted by the Securities and
Exchange Commission. Consolidated Operating Cash Flow is a non-GAAP financial
measure.
Free Cash Flow, which is a non-GAAP financial measure, is defined as
Operating Cash Flow less net interest, cash paid for taxes, and capital
expenditures. As such, it is unaffected by fluctuations in working capital
levels from period to period. It can also be computed as cash provided by
operating activities less capital expenditures adjusted for the change in
operating assets and liabilities, net of acquisitions.
Debt Excluding Exchangeables, which is a non-GAAP financial measure,
refers to the aggregate amount of our consolidated debt and capital lease
obligations less the amount of notes that are collateralized by securities
that we own.
Pro forma data is used by management to evaluate performance when
significant acquisitions or dispositions occur. Historical data reflects
results of acquired businesses only after the acquisition dates while pro
forma data enhances comparability of financial information between periods by
adjusting the data as if the acquisitions (or dispositions) occurred at the
beginning of the prior year. Our pro forma data is only adjusted for the
timing of acquisitions and does not include adjustments for costs related to
integration activities, cost savings or synergies that have been or may be
achieved by the combined businesses. We believe our pro forma data is not a
non-GAAP financial measure as contemplated by Regulation G.
Operating Cash Flow and Free Cash Flow should not be considered as
substitutes for operating income (loss), net income (loss), net cash provided
by operating activities or other measures of performance or liquidity reported
in accordance with GAAP. Debt Excluding Exchangeables should not be
considered as a substitute for Total Debt. Additionally, in the opinion of
management, our pro forma data is not necessarily indicative of future results
or what results would have been had the acquired businesses been operated by
us after the assumed earlier date.
Following are quantitative reconciliations of Free Cash Flow, Debt
Excluding Exchangeables, Consolidated Operating Cash Flow, and, although not
required by Regulation G, reconciliations of business segment Operating Cash
Flow and pro forma data.
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COMCAST CORPORATION
TABLE 7-A continued
Reconciliation of Historical and Pro Forma Data by Business Segment
(Unaudited)
(dollars in millions)
Historical (1)
Corporate
and
Three Months Ended December 31, 2003 Cable Content Other Total
Revenues $4,507 $250 ($15) $4,742
Operating expenses (excluding
depreciation & amortization) 2,795 192 35 3,022
Operating Cash Flow $1,712 $58 ($50) $1,720
Depreciation and amortization 924 37 17 978
Operating income (loss) $788 $21 ($67) $742
Capital expenditures $1,052 $9 $7 $1,068
Corporate
and
Three Months Ended December 31, 2002 Cable Content Other Total
Revenues $2,792 $220 ($12) $3,000
Operating expenses (excluding
depreciation & amortization) 1,890 173 32 2,095
Operating Cash Flow $902 $47 ($44) $905
Depreciation and amortization 770 39 15 824
Operating income (loss) $132 $8 ($59) $81
Capital expenditures $803 $5 $9 $817
Corporate
and
Twelve Months Ended December 31, 2003 Cable Content Other Total
Revenues $17,492 $885 ($29) $18,348
Operating expenses (excluding
depreciation & amortization) 11,142 658 156 11,956
Operating Cash Flow $6,350 $227 ($185) $6,392
Depreciation and amortization 4,223 145 70 4,438
Operating income (loss) $2,127 $82 ($255) $1,954
Capital expenditures $4,097 $23 $41 $4,161
Corporate
and
Twelve Months Ended December 31, 2002 Cable Content Other Total
Revenues $7,350 $767 ($15) $8,102
Operating expenses (excluding
depreciation & amortization) 4,552 575 139 5,266
Operating Cash Flow $2,798 $192 ($154) $2,836
Depreciation and amortization 1,670 147 98 1,915
Impairment charge - - - -
Operating income (loss) $1,128 $45 ($252) $921
Capital expenditures $1,814 $18 $20 $1,852
Adjustments (2)
Corporate
Three Months Ended December 31, 2003 Cable and Other Pro forma
Revenues - - $4,742
Operating expenses (excluding
depreciation & amortization) - - 3,022
Operating Cash Flow - - $1,720
Depreciation and amortization - - 978
Operating income (loss) - - $742
Capital expenditures - - $1,068
Adjustments (2)
Corporate
Three Months Ended December 31, 2002 Cable and Other Pro forma
Revenues $1,357 - $4,357
Operating expenses (excluding
depreciation & amortization) 1,211 (1) 3,305
Operating Cash Flow $146 $1 $1,052
Depreciation and amortization 421 - 1,245
Operating income (loss) ($275) $1 ($193)
Capital expenditures $648 - $1,465
Adjustments (2)
Corporate
Twelve Months Ended December 31, 2003 Cable and Other Pro forma
Revenues ($1) - $18,347
Operating expenses (excluding
depreciation & amortization) (1) - 11,955
Operating Cash Flow - - $6,392
Depreciation and amortization - - 4,438
Operating income (loss) - - $1,954
Capital expenditures - - $4,161
Adjustments (2)
Corporate
Twelve Months Ended December 31, 2002 Cable and Other Pro forma
Revenues $8,687 ($22) $16,767
Operating expenses (excluding
depreciation & amortization) 7,016 (18) 12,264
Operating Cash Flow $1,671 ($4) $4,503
Depreciation and amortization 2,742 - 4,657
Impairment charge 16,525 - $16,525
Operating income (loss) ($17,596) ($4) ($16,679)
Capital expenditures $3,426 - $5,278
Reconciliation of Total Debt to Debt Excluding Exchangeables (Unaudited)
(dollars in millions)
As of December 31, 2003
Current portion of long-term debt $3,161
Long-term debt 23,835
Total Debt $26,996
Exchangeable debt 4,318
Debt excluding exchangeables $22,678
(1) Historical amounts have been adjusted to reflect QVC as discontinued
operations.
(2) Pro forma data is only adjusted for timing of the acquisitions (or
dispositions) and for acquisitions does not include adjustments for
costs related to integration activities, cost savings or synergies
that have been or may be achieved by the combined businesses.
COMCAST CORPORATION
TABLE 7-B continued
Reconciliations of Cable Segment Historical and Pro Forma Data (Unaudited)
(dollars in millions)
Adjustments
Three Months Ended December 31, 2002 Historical (1) Pro forma
Revenues $2,792 $1,357 $4,149
Operating expenses (excluding
depreciation & amortization) 1,890 1,211 3,101
Operating Cash Flow 902 146 1,048
Depreciation & Amortization 770 421 1,191
Operating income (loss) $132 ($275) ($143)
Three Months Ended September 30, 2002 Adjustments
Historical (1) Pro forma
Revenues $1,548 $2,487 $4,035
Operating expenses (excluding
depreciation & amortization) 901 1,936 2,837
Operating Cash Flow 647 551 1,198
Depreciation & Amortization 309 777 1,086
Operating income (loss) $338 ($226) $112
Three Months Ended June 30, 2002 Adjustments
Historical (1) Pro forma
Revenues $1,541 $2,468 $4,009
Operating expenses (excluding
depreciation & amortization) 888 1,944 2,832
Operating Cash Flow 653 524 1,177
Depreciation & Amortization 298 785 1,083
Impairment Charge - 16,525 16,525
Operating income (loss) $355 ($16,786) ($16,431)
Three Months Ended March 31, 2002 Adjustments
Historical (1) Pro forma
Revenues $1,469 $2,375 $3,844
Operating expenses (excluding
depreciation & amortization) 872 1,926 2,798
Operating Cash Flow 597 449 1,046
Depreciation & Amortization 293 759 1,052
Operating income (loss) $304 ($310) ($6)
1) Pro forma data is only adjusted for timing of the acquisitions (or
dispositions) and for acquisitions does not include adjustments for
costs related to integration activities, cost savings or synergies
that have been or may be achieved by the combined businesses.
COMCAST CORPORATION
Table 7-C continued
Reconciliation of Net Income (Loss) to Free Cash Flow (Unaudited)
(dollars in millions, except per share data)
Three Months Ended
December 31,
2003 2002
per per
$ share (3) $ share (3)
Net Income (Loss) as reported $383 $0.17 ($51) ($0.03)
Discontinued Operations, net of tax - - (54) (0.03)
Non-operating items, net of tax (1) (191) (0.09) (94) (0.07)
Net Income (Loss) as adjusted $192 $0.08 ($199) ($0.13)
Items to reconcile net income (loss)
as adjusted to Operating Cash Flow:
Depreciation and amortization 978 0.43 824 0.52
Interest expense 439 0.19 335 0.21
Income tax expense 111 0.06 (55) (0.03)
Operating Cash Flow $1,720 $0.76 $905 $0.57
2003 2002
Operating Cash Flow $1,720 $1,720 $905 $905
Less:
Interest, net (2) (435) (435) (346) (346)
Cash Paid for Income Taxes (6) (878) (878) (22) (22)
Change in Operating Assets and
Liabilities,
net of acquisitions (72) 241
Net Cash Provided by Operating
Activities $335 $778
Less: Capital Expenditures (1,068) (817)
Free Cash Flow ($661) ($280)
Three Months Ended
December 31,
(1) Detail of non-operating items: 2003 2002
per per
$ share (3) $ share (3)
Investment (income) expense -
mark to market adjustments on
trading securities,
derivatives and hedged items,
net ($272) ($0.12) ($92) ($0.06)
Investment (income) expense -
(gain) loss on sales and
exchanges of investments (1) - (53) (0.03)
Investment expense - investment
impairment losses (4) 2 - 20 0.01
All other, net (5) (24) (0.01) (19) (0.01)
Total non-operating items (295) (0.13) (144) (0.09)
Tax Effect 104 0.04 50 0.02
Non-operating items, net of tax ($191) ($0.09) ($94) ($0.07)
Twelve Months Ended
December 31,
2003 2002
per per
$ share (3) $ share (3)
Net Income (Loss) as reported $3,240 $1.44 ($274) ($0.25)
Discontinued Operations, net of tax (3,458) (1.53) (195) (0.18)
Non-operating items, net of tax (1) 111 0.04 421 0.39
Net Income (Loss) as adjusted ($107) ($0.05) ($48) ($0.04)
Items to reconcile net income (loss)
as adjusted to Operating Cash Flow:
Depreciation and amortization 4,438 1.97 1,915 1.73
Interest expense 2,018 0.89 870 0.78
Income tax expense 43 0.02 99 0.08
Operating Cash Flow $6,392 $2.83 $2,836 $2.55
2003 2002
Operating Cash Flow $6,392 $6,392 $2,836 $2,836
Less:
Interest, net (2) (2,062) (2,062) (835) (835)
Cash Paid for Income Taxes (6) (945) (945) (33) (33)
Change in Operating Assets and
Liabilities,
net of acquisitions (531) 453
Net Cash Provided by Operating
Activities $2,854 $2,421
Less: Capital Expenditures (4,161) (1,852)
Free Cash Flow ($776) $116
Twelve Months Ended
December 31,
(1) Detail of non-operating items: 2003 2002
per per
$ share (3) $ share (3)
Investment (income) expense -
mark to market adjustments on trading
securities, derivatives and
hedged items, net $206 $0.09 $301 $0.27
Investment (income) expense -
(gain) loss on sales and exchanges
of investments (28) (0.01) 48 0.04
Investment expense - investment
impairment losses (4) 72 0.03 247 0.22
All other, net (5) (80) (0.03) 52 0.05
Total non-operating items 170 0.08 648 0.58
Tax Effect (59) (0.04) (227) (0.19)
Non-operating items, net of tax $111 $0.04 $421 $0.39
(2) Includes interest expense net of interest income and excludes
non-cash interest and subsidiary preferred dividends.
(3) Diluted weighted average shares outstanding for the three and
twelve months ended December 31, 2003 were 2.269 billion and 2.256
billion, respectively. Diluted weighted average shares outstanding
for the three and twelve months ended December 31, 2002 were 1.583
billion and 1.110 billion, respectively.
(4) We record losses on our investments for which we have determined
that a decline in value of the investment was considered other than
temporary.
(5) Includes investment, interest and dividend income, equity in net
(income) losses of affiliates, other income (expense) and minority
interest.
(6) Includes approximately $850 million cash paid income taxes
associated with the sale of QVC.
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