COMCAST CORPORATION
Table 1
Condensed Consolidated Statement of Operations (Unaudited)
(amounts in millions, except per share data)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2004 2003 2004 2003
Revenues $5,235 $4,742 $20,307 $18,348
Operating expenses 1,962 1,775 7,462 7,041
Selling, general and administrative
expenses 1,287 1,247 5,314 4,915
Operating Cash Flow 1,986 1,720 7,531 6,392
Depreciation 940 796 3,420 3,166
Amortization 335 182 1,203 1,272
Operating Income 711 742 2,908 1,954
Interest expense (457) (439) (1,876) (2,018)
Investment income (loss), net 241 323 472 (84)
Equity in net losses of affiliates (22) (27) (88) (60)
Other income 312 11 394 71
74 (132) (1,098) (2,091)
Income (Loss) from Continuing
Operations before Income Taxes
and Minority Interest 785 610 1,810 (137)
Income tax (expense) benefit (360) (215) (826) 16
Income (Loss) from Continuing
Operations Before Minority Interest 425 395 984 (121)
Minority interest (2) (12) (14) (97)
Income (Loss) from Continuing
Operations 423 383 970 (218)
Income from discontinued
operations, net of tax (1) - - - 168
Gain on discontinued
operations, net of tax (1) - - - 3,290
Net Income $423 $383 $970 $3,240
Diluted earnings (loss)
per common share
Income (loss) from continuing
operations $0.19 $0.17 $0.43 ($0.10)
Income from discontinued
operations - - - 0.08
Gain on discontinued operations - - - 1.46
Net Income per common share $0.19 $0.17 $0.43 $1.44
Diluted weighted average number of
common shares outstanding 2,228 2,269 2,250 2,256
1) On September 17, 2003, the Company completed the sale of its
approximate 57% interest in QVC, Inc. Accordingly, the results of QVC
are presented as discontinued operations.
COMCAST CORPORATION
TABLE 2
Condensed Consolidated Balance Sheet (Unaudited)
(dollars in millions)
December 31, 2004 December 31, 2003
ASSETS
CURRENT ASSETS
Cash and cash equivalents $452 $1,550
Investments 1,555 2,493
Accounts receivable, net 959 907
Other current assets 450 453
Total current assets 3,416 5,403
INVESTMENTS 12,812 14,818
PROPERTY AND EQUIPMENT, NET 18,711 18,473
FRANCHISE RIGHTS 51,071 51,050
GOODWILL 14,320 14,841
OTHER INTANGIBLE ASSETS, net 3,851 3,859
OTHER NONCURRENT ASSETS, net 694 715
$104,875 $109,159
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable, Accrued expenses
and other current liabilities 4,957 5,814
Deferred income taxes 360 679
Current portion of long-term debt 1,854 734
Current portion of
exchangeable debt 1,645 2,427
Total current liabilities 8,816 9,654
LONG-TERM DEBT, less current portion 20,039 21,944
LONG-TERM EXCHANGEABLE DEBT, less
current portion 54 1,891
DEFERRED INCOME TAXES 26,815 25,900
OTHER NONCURRENT LIABILITIES 7,261 7,716
MINORITY INTEREST 468 392
STOCKHOLDERS' EQUITY 41,422 41,662
$104,875 $109,159
TABLE 3
Condensed Consolidated Statement of Cash Flows (Unaudited)
(dollars in millions)
Twelve Months Ended
December 31,
2004 2003
OPERATING ACTIVITIES
Net cash provided by operating
activities from continuing
operations $5,930 $2,854
FINANCING ACTIVITIES
Proceeds from borrowings 1,030 9,398
Retirements and repayments of debt (2,323) (16,465)
Repurchases of common stock and stock
options (1,361) (14)
Other, net 138 33
Net cash used in financing activities
from continuing operations (2,516) (7,048)
INVESTING ACTIVITIES
Capital expenditures (3,660) (4,161)
Proceeds from restructuring of TWE
investment 2,100
Proceeds from sales of investments
and assets held for sale 228 5,871
Acquisitions, net of cash acquired (296) (152)
Additions to intangibles and other
noncurrent assets (628) (155)
Other, net (156) 1,736
Net cash (used in) provided by
investing activities from
continuing operations (4,512) 5,239
(DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (1,098) 1,045
CASH AND CASH EQUIVALENTS, beginning
of period 1,550 505
CASH AND CASH EQUIVALENTS, end of period $452 $1,550
TABLE 4
Calculation of Free Cash Flow (Unaudited) (1)
(dollars in millions)
Twelve Months Ended
December 31,
2004 2003
Operating Cash Flow $7,531 $6,392
Interest, Net (2) (1,729) (2,062)
Cash Paid for Income Taxes (3) (205) (95)
Capital Expenditures (3,660) (4,161)
FREE CASH FLOW $1,937 $74
Changes in Working Capital and Other
Items (4) 333 (1,381)
Net Cash Provided by Operating
Activities Less Capital Expenditures $2,270 ($1,307)
(1) Free Cash Flow is defined as Operating Cash Flow less net interest,
cash paid for taxes, and capital expenditures. It is unaffected by
fluctuations in working capital levels from period to period and
cash payments associated with intangible and other noncurrent
assets. Cash payments for intangible and other noncurrent assets
include long-term technology license agreements including computer
software, long term rights to service multi-dwelling properties and
programming content for our cable networks. In 2004, cash payments
for intangible assets also included a long-term strategic license
agreement with Gemstar of approximately $250 million.
(2) Includes interest expense net of interest income and excludes non-
cash interest and subsidiary preferred dividends.
(3) Excludes income tax refunds of $591 million received in 2004 and a
payment of $850 million associated with the sale of QVC in 4Q03.
(4) Free Cash Flow excludes amounts necessary to reconcile Free Cash
Flow to "Net Cash Provided by Operating Activities Less Capital
Expenditures." In 2004, these amounts include proceeds of $680
million related to the exchange/sale of Liberty Media and Liberty
Media International stock and proceeds of $591 million related to
income tax refunds, offset by $515 million in cash payments for
liabilities recorded as part of the acquisition of AT&T Broadband
and the timing of payments made during the first quarter of 2004.
For 2003, these amounts include $836 million in cash payments
associated with the acquisition of AT&T Broadband and a cash payment
of $850 million for income taxes associated with the sale of QVC.
COMCAST CORPORATION
TABLE 5
Pro Forma Financial Data by Business Segment (Unaudited) (1)
(dollars in millions)
Corporate
and
Content Other
Cable (2) (3) (4) Total
Three Months Ended December 31, 2004
Revenues $4,987 $205 $43 $5,235
Operating Cash Flow $1,974 $57 ($45) $1,986
Operating Income (Loss) $771 $11 ($71) $711
Operating Cash Flow Margin 39.6% 27.6% NM 37.9%
Capital Expenditures (5) $1,044 $3 $3 $1,050
Three Months Ended December 31, 2003
Revenues $4,510 $166 $71 $4,747
Operating Cash Flow $1,714 $59 ($52) $1,721
Operating Income (Loss) $790 $26 ($73) $743
Operating Cash Flow Margin 38.0% 35.1% NM 36.3%
Capital Expenditures (5) $1,052 $8 $8 $1,068
Twelve Months Ended December 31, 2004
Revenues $19,321 $787 $204 $20,312
Operating Cash Flow $7,473 $265 ($205) $7,533
Operating Income (Loss) $3,098 $103 ($291) $2,910
Operating Cash Flow Margin 38.7% 33.6% NM 37.1%
Capital Expenditures (5) $3,622 $17 $21 $3,660
Twelve Months Ended December 31, 2003
Revenues $17,506 $628 $229 $18,363
Operating Cash Flow $6,357 $214 ($173) $6,398
Operating Income (Loss) $2,134 $85 ($259) $1,960
Operating Cash Flow Margin 36.3% 34.0% NM 34.8%
Capital Expenditures (5) $4,097 $18 $46 $4,161
(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. All percentages are calculated based on actual
amounts. Minor differences may exist due to rounding.
(2) 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 financial data includes
the results of the 30,000 cable subscribers acquired from US Coastal
Cable in April 2004.
(3) Content includes our national networks E! Entertainment Television
and Style Network (E! Networks), The Golf Channel, Outdoor Life
Network, G4techTV and International Channel Networks.
(4) Corporate and Other includes Comcast-Spectacor, the Company's
domestic wireline telecommunications business, international
wireless operations, Corporate and elimination entries. Prior to
the first quarter of 2004, Comcast-Spectacor was included in
Content, which now only consists of our national networks. For all
periods presented, Comcast-Spectacor is included in Corporate and
Other. In addition, beginning in the third quarter of 2004,
Comcast-Spectacor includes the operating results of its investment
in a sports-event related business.
(5) Our Cable segment's capital expenditures are comprised of the
following categories:
YTD YTD
4Q04 4Q03 12/31/04 12/31/03
Customer Premise Equipment (CPE) $523 $425 $1,545 $1,573
Scalable Infrastructure 178 123 561 350
Line Extensions 86 78 311 251
Upgrades 164 279 902 1,414
Support Capital 93 147 303 509
Total $1,044 $1,052 $3,622 $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 6
Pro Forma Data - Cable Segment Components (Unaudited) (1) (2)
(dollars in millions, except average monthly revenue per subscriber
data)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2004 2003 2004 2003
Revenues:
Video (3) $3,242 $3,061 $12,897 $12,110
High-Speed Internet 855 629 3,124 2,255
Phone 173 183 701 801
Advertising 369 315 1,287 1,113
Other (4) 185 167 666 619
Franchise Fees 163 155 646 608
Total Revenues $4,987 $4,510 $19,321 $17,506
Programming Expense $4,149 $3,914
Operating Cash Flow $1,974 $1,714 $7,473 $6,357
Operating Income $771 $790 $3,098 $2,134
Operating Cash Flow Margin 39.6% 38.0% 38.7% 36.3%
Capital Expenditures $1,044 $1,052 $3,622 $4,097
Operating Cash Flow, Net of Capital
Expenditures $930 $662 $3,851 $2,260
4Q04 3Q04 4Q03 Growth Growth
vs. vs.
3Q04 4Q03
Video
Homes Passed (000's) 40,800 40,500 39,900 0.7% 2.3%
Basic Subscribers (000's) 21,548 21,487 21,540 0.3% 0.0%
Basic Penetration 52.8% 53.0% 53.9%
Quarterly Net Basic Subscriber
Additions (000's) 60 9 70 609.4% (13.7%)
Digital Subscribers (000's) 8,655 8,405 7,665 3.0% 12.9%
Digital Penetration 40.2% 39.1% 35.6%
Quarterly Net Digital Subscriber
Additions (000's) 251 341 384 (26.5%) (34.7%)
Digital Set-Top Boxes 12,959 12,480 11,189 3.8% 15.8%
Monthly Average Video Revenue per
Basic Subscriber $50.22 $50.00 $47.45 0.4% 5.8%
Monthly Average Total Revenue per
Basic Subscriber $77.29 $75.15 $69.92 2.8% 10.5%
High-Speed Internet
"Available" Homes (000's)
Subscribers (000's) 40,010 38,060 34,731 5.1% 15.2%
Penetration 6,992 6,554 5,285 6.7% 32.3%
Quarterly Net Subscriber Additions
(000's) 17.5% 17.2% 15.2%
Monthly Average Revenue per
Subscriber 438 549 423 (20.3%) 3.5%
$42.07 $42.91 $41.33 (2.0%) 1.8%
Phone
"Available" Homes (000's) 10,437 9,978 9,414 4.6% 10.9%
Subscribers (000's) 1,223 1,213 1,267 0.9% (3.4%)
Penetration 11.7% 12.2% 13.5%
Quarterly Net Subscriber Additions
(000's) 10 (12) (45) 188.1% 123.2%
Monthly Average Revenue per
Subscriber $47.30 $47.18 $47.13 0.3% 0.4%
Total Revenue Generating Units
(000's) (5) 38,418 37,659 35,757 2.0% 7.4%
(1) See Non-GAAP and Other Financial Measures in Table 7. All percentages
are calculated based on actual amounts. Minor differences may exist
due to rounding.
(2) Pro forma financial and subscriber 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. Pro forma financial and subscriber
data includes the results of the 30,000 cable subscribers acquired
from US Coastal Cable in April 2004. Pro forma subscriber data
includes 54,000 subscribers acquired in various small acquisitions
during the periods presented. The impact of these acquisitions on our
segment operating results was not material.
(3) Video revenues consist of our basic, expanded basic, premium, pay-
per-view, equipment and digital services.
(4) Other revenues include installation revenues, guide revenues,
commissions from electronic retailing, other product offerings,
commercial data services and revenues of our digital media center and
regional sports programming networks.
(5) The sum total of all basic video, digital video, high-speed
Internet and phone subscribers, excluding additional outlets.
TABLE 7
Non-GAAP and Other Financial Measures
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 repay debt, make
investments and return capital to investors, principally through stock
repurchases. 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 and cash payments associated with intangible
assets which are detailed in our quarterly and annual reports on Forms 10Q/K.
We believe that Free 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 Free Cash Flow is accrual-based and may
not be comparable to similar measures used by other companies.
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.
COMCAST CORPORATION
TABLE 7-A continued
Reconciliation of Historical and Pro Forma Data by Business Segment
(Unaudited)
(dollars in millions)
Historical (1)
Adjustments (2)
Corporate Corporate
Three Months Ended and and
December 31, 2004 Cable Content Other Total Cable Other Pro forma
Revenues $4,987 $205 $43 $5,235 - - $5,235
Operating expenses
(excluding
depreciation and
amortization) 3,013 148 88 3,249 - - 3,249
Operating Cash Flow $1,974 $57 ($45) $1,986 - - $1,986
Depreciation and
amortization 1,203 46 26 1,275 - - 1,275
Operating income
(loss) $771 $11 ($71) $711 - - $711
Capital expenditures $1,044 $3 $3 $1,050 - - $1,050
Adjustments (2)
Corporate Corporate
Three Months Ended and and
December 31, 2003 Cable Content Other Total Cable Other Pro forma
Revenues $4,507 $166 $69 $4,742 $3 $2 $4,747
Operating expenses
(excluding
depreciation and
amortization) 2,795 107 120 3,022 1 3 3,026
Operating Cash Flow $1,712 $59 ($51) $1,720 $2 ($1) $1,721
Depreciation and
amortization 924 33 21 978 - - 978
Operating income
(loss) $788 $26 ($72) $742 $2 ($1) $743
Capital expenditures $1,052 $8 $8 $1,068 - - $1,068
Adjustments (2)
Corporate Corporate
Twelve Months Ended and and
December 31, 2004 Cable Content Other Total Cable Other Pro forma
Revenues $19,316 $787 $204 $20,307 $5 - $20,312
Operating expenses
(excluding
depreciation and
amortization) 11,845 522 409 12,776 3 - 12,779
Operating Cash Flow $7,471 $265 ($205) $7,531 $2 - $7,533
Depreciation and
amortization 4,375 162 86 4,623 - - 4,623
Operating income
(loss) $3,096 $103 ($291) $2,908 $2 - $2,910
Capital expenditures $3,622 $17 $21 $3,660 - - $3,660
Adjustments (2)
Corporate Corporate
Twelve Months Ended and and
December 31, 2003 Cable Content Other Total Cable Other Pro forma
Revenues $17,492 $628 $228 $18,348 $14 $1 $18,363
Operating expenses
(excluding
depreciation and
amortization) 11,142 414 400 11,956 7 2 11,965
Operating Cash Flow $6,350 $214 ($172) $6,392 $7 ($1) $6,398
Depreciation and
amortization 4,223 129 86 4,438 - - 4,438
Operating income
(loss) $2,127 $85 ($258) $1,954 $7 ($1) $1,960
Capital expenditures $4,097 $18 $46 $4,161 - - $4,161
Reconciliation of Total Debt to Debt Excluding Exchangeables (Unaudited)
(dollars in millions)
31-Dec-04 31-Dec-03
Current portion of long-term debt $3,499 $3,161
Long-term debt 20,093 23,835
Total Debt $23,592 $26,996
Exchangeable debt 1,699 4,318
Debt excluding exchangeables $21,893 $22,678
Calculation of 2005 Free Cash Flow
(dollars in billions)
Operating Cash Flow Free Cash Flow
2004 Operating Income $2.9 $2.9
Add: Depreciation and Amortization 4.6 4.6
2004 Operating Cash Flow 7.5 7.5
2005 Operating Cash Flow Growth Rate 12%
2005 Operating Cash Flow Growth 0.9
Less: 2004 Capital Expenditures 3.7
2004 Consolidated Interest, net 1.7
2004 Consolidated Cash Paid for
Income Taxes 0.2
2004 Free Cash Flow $1.9
2005 Free Cash Flow Growth 35% to 45%
Projected 2005 Free Cash Flow $2.6 to $2.8
Reconciliation of 2004 Content Data to Adjusted Content Data
Comparable to 2004 Guidance
(dollars in millions)
Revenue OCF
Actual 2004 Content Segment 787 265
Adjustments:
International Channel (3) (7) 1
TechTV (4) (21) 9
Adjusted Content Segment 759 275
Actual 2003 Content Segment 628 214
Growth 20.8% 29.0%
(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 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. Minor differences may
exist due to rounding.
(3) Adjustments reflect actual operating results from the acquisition
date.
(4) TechTV revenue adjustment reflects the estimated impact of additional
TechTV affiliation and advertising revenue in the merged network and
OCF adjustment reflects estimated costs associated with the
reorganization and integration of G4 and TechTV.
COMCAST CORPORATION
TABLE 7-B continued
Reconciliation of Net Income to Free Cash Flow (Unaudited)
(dollars in millions, except per share data)
Three Months Ended
December 31,
2004 2003
per share per share
$ (2) $ (2)
Net Income as reported $423 $0.19 $383 $0.17
Discontinued Operations, net of tax - - - -
Non-operating items, net of tax (1) (344) (0.15) (192) (0.09)
Net Income (Loss) as adjusted $79 $0.04 $191 $0.08
Items to reconcile net income (loss)
as adjusted to Operating Cash Flow:
Depreciation and amortization 1,275 0.57 978 0.43
Interest expense 457 0.21 439 0.19
Income tax expense (benefit) 175 0.07 112 0.06
Operating Cash Flow $1,986 $0.89 $1,720 $0.76
2004 2003
Operating Cash Flow $1,986 $1,986 $1,720 $1,720
Less:
Interest, net (3) (420) (420) (435) (435)
Cash Paid for Income Taxes (16) (16) (28) (28)
Change in Operating Assets and
Liabilities, net of
acquisitions (4) (220) (678)
Other (5) 165 (244)
Net Cash Provided by Operating
Activities $1,495 $335
Less: Capital Expenditures (1,050) (1,068)
Free Cash Flow $500 $189
COMCAST CORPORATION
TABLE 7-B continued
Reconciliation of Net Income to Free Cash Flow (Unaudited)
(dollars in millions, except per share data)
Twelve Months Ended
December 31,
2004 2003
per share per share
$ (2) $ (2)
Net Income as reported $970 $0.43 $3,240 $1.44
Discontinued Operations, net of tax - - 3,458 (1.53)
Non-operating items, net of tax (1) (497) (0.22) 110 $0.04
Net Income (Loss) as adjusted $473 $0.21 ($108) ($0.05)
Items to reconcile net income (loss)
as adjusted to Operating Cash Flow:
Depreciation and amortization 4,623 2.05 4,438 1.97
Interest expense 1,876 0.83 2,018 0.89
Income tax expense (benefit) 559 0.26 44 0.02
Operating Cash Flow $7,531 $3.35 $6,392 $2.83
2004 2003
Operating Cash Flow $7,531 $7,531 $6,392 $6,392
Less:
Interest, net (3) (1,729) (1,729) (2,062) (2,062)
Cash Paid for Income Taxes (205) (205) (95) (95)
Change in Operating Assets and
Liabilities,
net of acquisitions (4) (331) (380)
Other (5) 664 (1,001)
Net Cash Provided by Operating
Activities $5,930 $2,854
Less: Capital Expenditures (3,660) (4,161)
Free Cash Flow $1,937 $74
(1) Detail of non-operating items:
Three Months Ended
December 31,
2004 2003
per share per share
$ (2) $ (2)
Investment (income) expense -
mark to market adjustments
on trading securities, derivatives
and hedged items, net ($143) ($0.06) ($272) ($0.12)
Investment (income) - gain
on sales and exchanges of
investments (9) - (1) -
Investment expense - investment
impairment losses (6) 6 - 2 -
All other, net (7) (383) (0.18) (24) (0.01)
Total non-operating items (529) (0.24) (295) (0.13)
Tax Effect 185 0.09 103 0.04
Non-operating items,
net of tax ($344) ($0.15) ($192) ($0.09)
Twelve Months Ended
December 31,
2004 2003
per share per share
$ (2) $ (2)
Investment (income) expense -
mark to market adjustments
on trading securities, derivatives
and hedged items, net ($283) ($0.13) $206 $0.09
Investment (income) - gain
on sales and exchanges of
investments (45) (0.02) (28) (0.01)
Investment expense - investment
impairment losses (6) 16 0.01 72 0.03
All other, net (7) (452) (0.20) (80) (0.03)
Total non-operating items (764) (0.34) 170 0.08
Tax Effect 267 0.12 (60) (0.04)
Non-operating items, net of
tax ($497) ($0.22) $110 $0.04
(2) Diluted weighted average shares outstanding for the three and
twelve months ended December 31, 2004 were 2.228 billion and 2.250
billion, respectively. Diluted weighted average shares outstanding
for the three and twelve months ended December 31, 2003, were 2.269
billion and 2.256 billion, respectively.
(3) Includes interest expense net of interest income and excludes
non-cash interest and subsidiary preferred dividends.
(4) Included in the twelve months ended December 31, 2004, is a $591
million income tax refund received in the second quarter and the
fourth quarter of 2004.
(5) Includes non-cash expense included in Operating Cash Flow (such as
equity compensation), cash proceeds from the sale of trading
securities ($127 million in 4Q04 and $680 million year-to-date 2004
primarily related to Liberty Media and Liberty Media International
shares and $85 million year-to-date 2003 related to Sprint shares),
cash related to other (income) expense, dividends, legal reserve
adjustment and the net effect of changes in accrued income taxes.
2003 includes a cash payment of $850 million for income taxes
associated with the sale of QVC.
(6) We record losses on our investments for which we have determined that
a decline in value of the investment is other than temporary.
(7) Includes investment, interest and dividend income, equity in
net (income) losses of affiliates, other (income) expense (including
a $250 million legal reserve adjustment) and minority interest.
|
|