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Comcast Corp (CMCSA) SEC Filing 10-Q Quarterly report for the period ending Wednesday, September 30, 2020

Comcast Corp

CIK: 1166691 Ticker: CMCSA
        comcastlogo2a021.jpg
PRESS RELEASE
COMCAST REPORTS 3rd QUARTER 2020 RESULTS
PHILADELPHIA - October 29, 2020… Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended September 30, 2020.
We are nearly eight months into this pandemic – and despite many harsh realities, I couldn’t be more pleased and proud of how our team has worked together across the company to find safe and creative solutions to successfully operate in this environment. We are executing at the highest level; and perhaps, most importantly, accelerating innovation, which will drive long-term future growth. This third quarter, we delivered the best broadband results in our company’s history. Driven by our industry-leading platform and strategic focus on broadband, aggregation and streaming, we added a record 633,000 high-speed internet customers and 556,000 total net new customer relationships. At the same time, we’re growing our entertainment platforms with the addition of Flex, which has a significant positive impact on broadband churn and customer lifetime value. Our integrated strategy is also driving results in streaming with nearly 22 million sign-ups for Peacock to date, and we are exceeding our expectations on all engagement metrics in only a few months. And Sky continues to add customer relationships at higher prices while reducing churn to all-time lows in our core UK business. Going forward, and as we emerge from the pandemic, we believe we are extremely well positioned to provide seamless and integrated experiences for our customers and to deliver superior long-term growth and returns for our shareholders," commented Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.
($ in millions, except per share data)
3rd QuarterYear to Date
Consolidated Results20202019Change20202019Change
Revenue $25,532 $26,827 (4.8 %)$75,856 $80,544 (5.8 %)
Net Income Attributable to Comcast$2,019 $3,217 (37.2 %)$7,154 $9,895 (27.7 %)
Adjusted Net Income1
$3,000 $3,667 (18.2 %)$9,436 $10,754 (12.3 %)
Adjusted EBITDA2
$7,583 $8,553 (11.3 %)$23,640 $25,822 (8.5 %)
Earnings per Share3
$0.44 $0.70 (37.1 %)$1.55 $2.15 (27.9 %)
Adjusted Earnings per Share1
$0.65 $0.79 (17.7 %)$2.04 $2.33 (12.4 %)
Net Cash Provided by Operating Activities$5,228 $5,191 0.7 %$19,695 $19,462 1.2 %
Free Cash Flow4
$2,289 $2,072 10.5 %$11,580 $10,910 6.1 %
For additional detail on segment revenue and expenses, customer metrics, capital expenditures, and free cash flow, please refer to the trending schedules on Comcast’s Investor Relations website at www.cmcsa.com.
3rd Quarter 2020 Highlights:
Generated Consolidated Adjusted EBITDA of $7.6 Billion, Adjusted EPS of $0.65 and Free Cash Flow of $2.3 Billion
Cable Communications Total Customer Relationship Net Additions Were 556,000, the Best Quarterly Result on Record
Total High-Speed Internet Customer Net Additions Were 633,000, the Best Quarterly Result on Record
Cable Communications Adjusted EBITDA Increased 10.5% Driven by Strength in High-Speed Internet
Peacock Has Nearly 22 Million Sign-Ups to Date Across the U.S. and Recently Secured Distribution on the Roku Platform
NBCUniversal Reorganized Its Television and Streaming Businesses Under Mark Lazarus and Cesar Conde with a Centralized Structure Optimizing Content Creation, Distribution and Monetization
NBCUniversal Completed a Successful Upfront, with Strong Volume Commitments and Higher Pricing
Sky Customer Trends Improved Sequentially, and Included Net Additions in the U.K.
Premier League Viewership Reached Record Levels on Sky Sports, Including the Highest Average Season Viewership on Record for the 2019/20 Season and the Highest Daily U.K. Viewership on Record for the 2020/21 Season to Date


The following information was filed by Comcast Corp (CMCSA) on Thursday, October 29, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                       to                      
cmcsa-20200930_g1.jpg
Commission File Number
Exact Name of Registrant; State of
Incorporation; Address and Telephone
Number of Principal Executive Offices
I.R.S. Employer Identification No.
001-32871
COMCAST CORPORATION
27-0000798
Pennsylvania
One Comcast Center
Philadelphia, PA 19103-2838
(215) 286-1700

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.01 par valueCMCSANASDAQ Global Select Market
0.250% Notes due 2027CMCS27NASDAQ Global Market
1.500% Notes due 2029CMCS29NASDAQ Global Market
0.750% Notes due 2032CMCS32NASDAQ Global Market
1.875% Notes due 2036CMCS36NASDAQ Global Market
1.250% Notes due 2040CMCS40NASDAQ Global Market
9.455% Guaranteed Notes due 2022CMCSA/22New York Stock Exchange
5.50% Notes due 2029CCGBP29New York Stock Exchange
2.0% Exchangeable Subordinated Debentures due 2029CCZNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
As of September 30, 2020, there were 4,565,878,780 shares of Comcast Corporation Class A common stock and 9,444,375 shares of Class B common stock outstanding.



TABLE OF CONTENTS
 
Explanatory Note
Beginning with our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, we are voluntarily complying with new disclosure rules for guarantors and issuers of guaranteed debt securities issued by the Securities and Exchange Commission (“SEC”) in March 2020, as permitted by the transition guidance contained in the SEC’s final rule release “Financial Disclosures about Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities.” As a result, this report includes disclosures related to our consolidated subsidiaries that guarantee or have issued guaranteed debt securities registered with the SEC that are included within our guarantee structure (refer to Guarantee Structure within the Liquidity and Capital Resources section of Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations). As a result of these rules, NBCUniversal Media, LLC is no longer required to prepare stand-alone periodic reports under SEC rules, and our periodic reports are no longer prepared as a combined report being filed separately by Comcast Corporation and NBCUniversal Media, LLC.
Unless indicated otherwise, throughout this Quarterly Report on Form 10-Q, we refer to Comcast and its consolidated subsidiaries, as “Comcast,” “we,” “us” and “our;” Comcast Cable Communications, LLC and its consolidated subsidiaries as “Comcast Cable;” Comcast Holdings Corporation as “Comcast Holdings;” NBCUniversal, LLC as “NBCUniversal Holdings;” NBCUniversal Enterprise, Inc. as “NBCUniversal Enterprise;” NBCUniversal Media, LLC and its consolidated subsidiaries as “NBCUniversal;” and Sky Limited and its consolidated subsidiaries as “Sky.”
This Quarterly Report on Form 10-Q is for the three and nine months ended September 30, 2020. This Quarterly Report on Form 10-Q modifies and supersedes documents filed before it. The SEC allows us to “incorporate by reference” information that we file with it, which means that we can disclose important information to you by referring you directly to those documents. Information incorporated by reference is considered to be part of this Quarterly Report on Form 10-Q. In addition, information that we file with the SEC in the future will automatically update and supersede information contained in this Quarterly Report on Form 10-Q.
You should carefully review the information contained in this Quarterly Report on Form 10-Q and particularly consider any risk factors set forth in this Quarterly Report on Form 10-Q and in other reports or documents that we file from time to time with the SEC. In this Quarterly Report on Form 10-Q, we state our beliefs of future events and of our future financial performance. In some cases, you can identify these so-called “forward-looking statements” by words such as “may,” “will,” “should,” “expects,” “believes,” “estimates,” “potential,” or “continue,” or the negative of these words, and other comparable words. You should be aware that these statements are only our predictions. In evaluating these statements, you should consider various factors, including the risks outlined below and in other reports we file with the SEC. Actual events or our actual results



could differ materially from our forward-looking statements as a result of any such factors, which could adversely affect our businesses, results of operations or financial condition. We undertake no obligation to update any forward-looking statements.
Our businesses may be affected by, among other things, the following:
the COVID-19 pandemic has had, and we expect will continue to have, a material adverse effect on our businesses and results of operations
our businesses operate in highly competitive and dynamic industries, and our businesses and results of operations could be adversely affected if we do not compete effectively
changes in consumer behavior driven by online video distribution platforms for viewing content continue to adversely affect our businesses and challenge existing business models
a decline in advertisers’ expenditures or changes in advertising markets could negatively impact our businesses
our businesses depend on keeping pace with technological developments
we are subject to regulation by federal, state, local and foreign authorities, which impose additional costs and restrictions on our businesses
programming expenses for our video services are increasing, which could adversely affect Cable Communications’ and Sky’s video businesses
NBCUniversal’s and Sky’s success depends on consumer acceptance of their content, and their businesses may be adversely affected if their content fails to achieve sufficient consumer acceptance or the costs to create or acquire content increase
the loss of programming distribution and licensing agreements, or the renewal of these agreements on less favorable terms, could adversely affect our businesses
less favorable telecommunications access regulations, the loss of Sky’s transmission agreements with satellite or telecommunications providers or the renewal of these agreements on less favorable terms could adversely affect Sky’s businesses
we rely on network and information systems and other technologies, as well as key properties, and a disruption, cyber attack, failure or destruction of such networks, systems, technologies or properties may disrupt our businesses
our businesses depend on using and protecting certain intellectual property rights and on not infringing the intellectual property rights of others
we may be unable to obtain necessary hardware, software and operational support
weak economic conditions may have a negative impact on our businesses
acquisitions and other strategic initiatives present many risks, and we may not realize the financial and strategic goals that we had contemplated
we face risks relating to doing business internationally that could adversely affect our businesses
unfavorable litigation or governmental investigation results could require us to pay significant amounts or lead to onerous operating procedures
labor disputes, whether involving employees or sports organizations, may disrupt our operations and adversely affect our businesses
the loss of key management personnel or popular on-air and creative talent could have an adverse effect on our businesses
our Class B common stock has substantial voting rights and separate approval rights over several potentially material transactions, and our Chairman and CEO has considerable influence over our company through his beneficial ownership of our Class B common stock



PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
Comcast Corporation
Condensed Consolidated Statement of Income
(Unaudited)
 Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions, except per share data)2020201920202019
Revenue$25,532 $26,827 $75,856 $80,544 
Costs and Expenses:
Programming and production8,565 8,316 23,683 25,140 
Other operating and administrative8,059 8,090 23,959 24,076 
Advertising, marketing and promotion1,512 1,901 4,791 5,674 
Depreciation2,122 2,124 6,328 6,561 
Amortization1,198 1,056 3,520 3,215 
Total costs and expenses21,456 21,487 62,281 64,666 
Operating income4,076 5,340 13,575 15,878 
Interest expense(1,220)(1,167)(3,544)(3,454)
Investment and other income (loss), net(86)(110)(382)511 
Income before income taxes2,770 4,063 9,649 12,935 
Income tax expense(739)(775)(2,385)(2,812)
Net income2,031 3,288 7,264 10,123 
Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock 12 71 110 228 
Net income attributable to Comcast Corporation$2,019 $3,217 $7,154 $9,895 
Basic earnings per common share attributable to Comcast Corporation shareholders$0.44 $0.71 $1.57 $2.18 
Diluted earnings per common share attributable to Comcast Corporation shareholders$0.44 $0.70 $1.55 $2.15 
See accompanying notes to condensed consolidated financial statements.
1


Comcast Corporation
Condensed Consolidated Statement of Comprehensive Income
(Unaudited) 
 Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)2020201920202019
Net income$2,031 $3,288 $7,264 $10,123 
Unrealized gains (losses) on marketable securities, net of deferred taxes of $—, $—, $1 and $—
(1)
Deferred gains (losses) on cash flow hedges, net of
   deferred taxes of $6, $(35), $23 and $(24)
(99)82 (72)146 
Amounts reclassified to net income:
Realized (gains) losses on cash flow hedges, net of
   deferred taxes of $8, $11, $29 and $7
(8)(52)(135)(39)
Employee benefit obligations, net of deferred taxes of
   $2, $3, $7 and $8
(8)(8)(24)(24)
Currency translation adjustments, net of deferred taxes
   of $40, $(80), $24 and $(98)
1,642 (1,144)(589)(903)
Comprehensive income3,559 2,168 6,443 9,307 
Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock12 71 110 228 
Less: Other comprehensive income (loss) attributable to noncontrolling interests37 (23)14 (25)
Comprehensive income (loss) attributable to Comcast Corporation$3,510 $2,120 $6,319 $9,104 
See accompanying notes to condensed consolidated financial statements.
2


Comcast Corporation
Condensed Consolidated Statement of Cash Flows
(Unaudited) 
 Nine Months Ended
September 30,
(in millions)20202019
Operating Activities
Net income$7,264 $10,123 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization9,848 9,776 
Share-based compensation922 790 
Noncash interest expense (income), net606 310 
Net (gain) loss on investment activity and other514 (166)
Deferred income taxes(224)468 
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables, net982 360 
Film and television costs, net163 (321)
Accounts payable and accrued expenses related to trade creditors(545)(1,149)
Other operating assets and liabilities165 (729)
Net cash provided by operating activities19,695 19,462 
Investing Activities
Capital expenditures(6,344)(6,866)
Cash paid for intangible assets(1,771)(1,686)
Construction of Universal Beijing Resort(1,118)(736)
Acquisitions, net of cash acquired(225)(181)
Proceeds from sales of businesses and investments2,131 208 
Purchases of investments(545)(1,697)
Other(101)46 
Net cash provided by (used in) investing activities(7,973)(10,912)
Financing Activities
Proceeds from (repayments of) short-term borrowings, net— (1,288)
Proceeds from borrowings18,339 516 
Proceeds from collateralized obligation— 5,175 
Repurchases and repayments of debt(16,771)(9,975)
Repurchases of common stock under employee plans(429)(432)
Dividends paid(3,086)(2,778)
Other(1,644)(44)
Net cash provided by (used in) financing activities(3,591)(8,826)
Impact of foreign currency on cash, cash equivalents and restricted cash17 (31)
Increase (decrease) in cash, cash equivalents and restricted cash8,148 (307)
Cash, cash equivalents and restricted cash, beginning of period5,589 3,909 
Cash, cash equivalents and restricted cash, end of period$13,737 $3,602 
See accompanying notes to condensed consolidated financial statements.
3


Comcast Corporation
Condensed Consolidated Balance Sheet
(Unaudited)
(in millions, except share data)September 30,
2020
December 31,
2019
Assets
Current Assets:
Cash and cash equivalents$13,707 $5,500 
Receivables, net10,310 11,292 
Programming rights— 3,877 
Other current assets3,352 4,723 
Total current assets27,369 25,392 
Film and television costs12,741 8,933 
Investments6,702 6,989 
Investment securing collateralized obligation429 694 
Property and equipment, net of accumulated depreciation of $53,959 and $53,239
50,466 48,322 
Goodwill68,898 68,725 
Franchise rights59,365 59,365 
Other intangible assets, net of accumulated amortization of $18,405 and $17,217
34,485 36,128 
Other noncurrent assets, net8,485 8,866 
Total assets$268,940 $263,414 
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses related to trade creditors$10,979 $10,826 
Accrued participations and residuals1,794 1,730 
Deferred revenue2,888 2,768 
Accrued expenses and other current liabilities9,421 10,516 
Current portion of long-term debt4,429 4,452 
Total current liabilities29,511 30,292 
Long-term debt, less current portion99,995 97,765 
Collateralized obligation5,167 5,166 
Deferred income taxes27,905 28,180 
Other noncurrent liabilities17,537 16,765 
Commitments and contingencies (Note 12)
Redeemable noncontrolling interests and redeemable subsidiary preferred stock1,254 1,372 
Equity:
Preferred stock—authorized, 20,000,000 shares; issued, zero
— — 
Class A common stock, $0.01 par value—authorized, 7,500,000,000 shares; issued, 5,438,669,808 and 5,416,381,298; outstanding, 4,565,878,780 and 4,543,590,270
54 54 
Class B common stock, $0.01 par value—authorized, 75,000,000 shares; issued and outstanding, 9,444,375
— — 
Additional paid-in capital39,173 38,447 
Retained earnings54,254 50,695 
Treasury stock, 872,791,028 Class A common shares
(7,517)(7,517)
Accumulated other comprehensive income (loss)212 1,047 
Total Comcast Corporation shareholders’ equity86,176 82,726 
Noncontrolling interests1,395 1,148 
Total equity87,571 83,874 
Total liabilities and equity$268,940 $263,414 
See accompanying notes to condensed consolidated financial statements.
4


Comcast Corporation
Condensed Consolidated Statement of Changes in Equity
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions, except per share data)2020201920202019
Redeemable Noncontrolling Interests and Redeemable Subsidiary Preferred Stock
Balance, beginning of period$1,256 $1,329 $1,372 $1,316 
Contributions from (distributions to) noncontrolling interests, net
(9)(12)(46)(49)
Other(9)(9)(174)(28)
Net income (loss)16 60 102 129 
Balance, end of period$1,254 $1,368 $1,254 $1,368 
Class A common stock
Balance, beginning of period$54 $54 $54 $54 
Balance, end of period$54 $54 $54 $54 
Additional Paid-In Capital
Balance, beginning of period$38,936 $37,950 $38,447 $37,461 
Stock compensation plans240 193 713 604 
Repurchases of common stock under employee plans
(61)(164)(39)
Employee stock purchase plans60 51 193 166 
Other(2)(4)(16)
Balance, end of period$39,173 $38,196 $39,173 $38,196 
Retained Earnings
Balance, beginning of period$53,420 $46,425 $50,695 $41,983 
Cumulative effects of adoption of accounting standards
— — (124)— 
Repurchases of common stock under employee plans
(113)(101)(281)(406)
Dividends declared(1,062)(965)(3,187)(2,893)
Other(10)(6)(3)(9)
Net income (loss)2,019 3,217 7,154 9,895 
Balance, end of period$54,254 $48,570 $54,254 $48,570 
Treasury Stock at Cost
Balance, beginning of period$(7,517)$(7,517)$(7,517)$(7,517)
Balance, end of period$(7,517)$(7,517)$(7,517)$(7,517)
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period$(1,279)$(62)$1,047 $(368)
Other comprehensive income (loss)1,491 (1,097)(835)(791)
Balance, end of period$212 $(1,159)$212 $(1,159)
Noncontrolling Interests
Balance, beginning of period$1,177 $980 $1,148 $889 
Other comprehensive income (loss)38 (22)14 (24)
Contributions from (distributions to) noncontrolling interests, net
185 50 200 66 
Other(1)(3)25 (14)
Net income (loss)(4)11 99 
Balance, end of period$1,395 $1,016 $1,395 $1,016 
Total equity$87,571 $79,160 $87,571 $79,160 
Cash dividends declared per common share$0.23 $0.21 $0.69 $0.63 
See accompanying notes to condensed consolidated financial statements.
5


Comcast Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1: Condensed Consolidated Financial Statements
Business and Basis of Presentation
We have prepared these unaudited condensed consolidated financial statements based on SEC rules that permit reduced disclosure for interim periods. These financial statements include all adjustments that are necessary for a fair presentation of our consolidated results of operations, cash flows and financial condition for the periods shown, including normal, recurring accruals and other items. The consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year.
The year-end condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”). For a more complete discussion of our accounting policies and certain other information, refer to our consolidated financial statements included in our 2019 Annual Report on Form 10-K and the notes within this Form 10-Q.
Note 2: Segment Information
We present our operations in six reportable business segments: (1) Comcast Cable in one reportable business segment, referred to as Cable Communications; (2) NBCUniversal in four reportable business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks (collectively, the “NBCUniversal segments”); and (3) Sky in one reportable business segment.
Cable Communications is a leading provider of high-speed internet, video, voice, wireless, and security and automation services to residential customers under the Xfinity brand; we also provide these and other services to business customers and sell advertising.
Cable Networks consists primarily of our national cable networks that provide a variety of entertainment, news and information, and sports content; our regional sports and news networks; our international cable networks; our cable television studio production operations; and various digital properties.
Broadcast Television consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo owned local broadcast television stations, the NBC Universo national cable network, our broadcast television studio production operations, and various digital properties.
Filmed Entertainment consists primarily of the operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment worldwide; our films are also produced under the Illumination, DreamWorks Animation and Focus Features names.
Theme Parks consists primarily of our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. In addition, we are developing a theme park in Beijing, China along with a consortium of Chinese state-owned companies, and an additional theme park in Orlando, Florida.
Sky is one of Europe’s leading entertainment companies, which primarily includes a direct-to-consumer business, providing video, high-speed internet, voice and wireless phone services, and a content business, operating entertainment networks, the Sky News broadcast network and Sky Sports networks.
Our other business interests consist primarily of the operations of Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania, and other business initiatives, such as Peacock, our new direct-to-consumer streaming service that primarily features NBCUniversal content.
We use Adjusted EBITDA to evaluate the profitability of our operating segments and the components of net income attributable to Comcast Corporation excluded from Adjusted EBITDA are not separately evaluated. Our financial data by business segment is presented in the tables below.
6


Comcast Corporation
 Three Months Ended September 30, 2020
(in millions)Revenue
Adjusted EBITDA(d)
Depreciation and AmortizationCapital
Expenditures
Cash Paid for Intangible Assets
Cable Communications$15,000 $6,411 $1,952 $1,770 $296 
NBCUniversal
Cable Networks2,736 870 191 
Broadcast Television2,414 436 38 13 
Filmed Entertainment1,280 300 26 
Theme Parks311 (203)208 306 11 
Headquarters and Other(a)
32 (121)113 30 28 
Eliminations(b)
(49)(1)— — — 
NBCUniversal6,724 1,281 576 357 53 
Sky4,793 515 750 237 176 
Corporate and Other(c)
84 (496)42 23 27 
Eliminations(b)
(1,069)(128)— — — 
Comcast Consolidated$25,532 $7,583 $3,320 $2,387 $552 
 Three Months Ended September 30, 2019
(in millions)Revenue
Adjusted EBITDA(d)
Depreciation and AmortizationCapital
Expenditures
Cash Paid for Intangible Assets
Cable Communications$14,584 $5,801 $1,967 $1,814 $336 
NBCUniversal
Cable Networks2,771 955 184 
Broadcast Television2,230 338 36 36 
Filmed Entertainment1,706 195 21 
Theme Parks1,631 731 182 400 
Headquarters and Other(a)
21 (130)114 55 43 
Eliminations(b)
(64)— — — 
NBCUniversal8,295 2,091 537 505 63 
Sky4,554 899 644 104 188 
Corporate and Other(c)
42 (237)32 88 21 
Eliminations(b)
(648)(1)— — — 
Comcast Consolidated$26,827 $8,553 $3,180 $2,511 $608 
 Nine Months Ended September 30, 2020
(in millions)Revenue
Adjusted EBITDA(d)
Depreciation and Amortization
Capital
Expenditures
Cash Paid for Intangible Assets
Cable Communications$44,346 $18,663 $5,835 $4,491 $978 
NBCUniversal
Cable Networks8,110 3,361 576 16 11 
Broadcast Television7,462 1,578 120 58 12 
Filmed Entertainment3,844 634 71 14 
Theme Parks1,267 (526)590 897 42 
Headquarters and Other(a)
79 (381)358 129 107 
Eliminations(b)
(180)— — — — 
NBCUniversal20,582 4,666 1,715 1,109 186 
Sky13,389 1,815 2,188 649 512 
Corporate and Other(c)
250 (1,254)110 95 95 
Eliminations(b)
(2,711)(250)— — — 
Comcast Consolidated$75,856 $23,640 $9,848 $6,344 $1,771 
7


Comcast Corporation
 Nine Months Ended September 30, 2019
(in millions)Revenue
Adjusted EBITDA(d)
Depreciation and Amortization
Capital
Expenditures
Cash Paid for Intangible Assets
Cable Communications$43,314 $17,383 $6,038 $4,771 $962 
NBCUniversal
Cable Networks8,586 3,418 549 21 10 
Broadcast Television7,099 1,259 115 86 
Filmed Entertainment4,931 742 60 13 16 
Theme Parks4,371 1,819 514 1,172 44 
Headquarters and Other(a)
60 (486)341 139 120 
Eliminations(b)
(233)— — — — 
NBCUniversal24,814 6,752 1,579 1,431 199 
Sky14,179 2,334 2,058 540 491 
Corporate and Other(c)
206 (637)101 124 34 
Eliminations(b)
(1,969)(10)— — — 
Comcast Consolidated$80,544 $25,822 $9,776 $6,866 $1,686 
(a)NBCUniversal Headquarters and Other activities include costs associated with overhead, allocations, personnel costs and headquarter initiatives.
(b)Included in Eliminations are transactions that our segments enter into with one another. Our segments generally report transactions with one another as if they were stand-alone businesses in accordance with GAAP, and these transactions are eliminated in consolidation. When multiple segments enter into transactions to provide products and services to third parties, revenue is generally allocated to our segments based on relative value.
The most significant transactions between our segments include distribution revenue at Cable Networks for the sale of programming to Cable Communications; content licensing revenue in our NBCUniversal segments (Broadcast Television, Filmed Entertainment and Cable Networks) for the license of owned content to Peacock and Sky, and for licenses of owned content to other NBCUniversal segments; advertising revenue at Cable Communications, Cable Networks and Broadcast Television; and distribution revenue at Broadcast Television for fees received under retransmission consent agreements from Cable Communications. For segment reporting purposes, we account for intercompany content licenses as follows:
Revenue for licenses of content from NBCUniversal segments to Peacock and Sky are generally recognized at a point in time, consistent with the recognition of transactions with third parties, when the content is delivered and made available for use. The costs of these licenses at Peacock and Sky are recognized as the content is used over the license period. The difference in timing of recognition between segments results in an Adjusted EBITDA impact in eliminations as the profits on these transactions are deferred in our consolidated results and recognized as the content is used over the license period.
Revenue for licenses of content between NBCUniversal segments is recognized over time to correspond with the amortization of the programming rights asset for the licensed content as the content is used over the license period.
(c)Corporate and Other activities include costs associated with overhead and personnel, revenue and expenses associated with our other business interests, including Peacock.
(d)We use Adjusted EBITDA as the measure of profit or loss for our operating segments. Adjusted EBITDA is defined as net income attributable to Comcast Corporation before net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock, income tax expense, investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any. From time to time, we may exclude from Adjusted EBITDA the impact of certain events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance. Our reconciliation of the aggregate amount of Adjusted EBITDA for our reportable segments to consolidated income before income taxes is presented in the table below.
 Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2020201920202019
Adjusted EBITDA$7,583 $8,553 $23,640 $25,822 
Adjustment for potential legal settlement(177)— (177)— 
Adjustment for Sky transaction-related costs(10)(33)(40)(168)
Depreciation(2,122)(2,124)(6,328)(6,561)
Amortization(1,198)(1,056)(3,520)(3,215)
Interest expense
(1,220)(1,167)(3,544)(3,454)
Investment and other income (loss), net(86)(110)(382)511 
Income before income taxes$2,770 $4,063 $9,649 $12,935 

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Comcast Corporation
Note 3: Revenue
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)2020201920202019
Residential:
High-speed internet$5,198 $4,721 $15,199 $13,961 
Video5,421 5,541 16,468 16,763 
Voice876 963 2,652 2,935 
Wireless400 326 1,069 795 
Business services2,049 1,971 6,096 5,795 
Advertising674 603 1,659 1,766 
Other382 459 1,203 1,299 
Total Cable Communications(a)
15,000 14,584 44,346 43,314 
Distribution 1,617 1,681 4,780 5,123 
Advertising793 809 2,306 2,592 
Content licensing and other326 281 1,024 871 
Total Cable Networks2,736 2,771 8,110 8,586 
Advertising1,054 1,191 3,331 3,837 
Content licensing740 447 2,224 1,479 
Distribution and other620 592 1,907 1,783 
Total Broadcast Television2,414 2,230 7,462 7,099 
Theatrical29 549 354 1,246 
Content licensing844 737 2,385 2,266 
Home entertainment278 185 678 681 
Other 129 235 427 738 
Total Filmed Entertainment1,280 1,706 3,844 4,931 
Total Theme Parks311 1,631 1,267 4,371 
Headquarters and Other32 21 79 60 
Eliminations(b)
(49)(64)(180)(233)
Total NBCUniversal6,724 8,295 20,582 24,814 
Direct-to-consumer3,943 3,793 11,146 11,516 
Content388 315 947 1,061 
Advertising462 446 1,296 1,602 
Total Sky4,793 4,554 13,389 14,179 
Corporate and Other84 42 250 206 
Eliminations(b)
(1,069)(648)(2,711)(1,969)
Total revenue$25,532 $26,827 $75,856 $80,544 
(a)For both the three and nine months ended September 30, 2020 and 2019, 2.6% of Cable Communications segment revenue was derived from franchise and other regulatory fees.
(b)Included in Eliminations are transactions that our segments enter into with one another. See Note 2 for a description of these transactions.
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Comcast Corporation
We operate primarily in the United States but also in select international markets. The table below summarizes revenue by geographic location.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)2020201920202019
United States$19,680 $20,398 $59,026 $61,394 
Europe5,196 5,211 14,850 15,878 
Other656 1,218 1,980 3,272 
Total revenue$25,532 $26,827 $75,856 $80,544 
No single customer accounted for a significant amount of revenue in any period presented.
Condensed Consolidated Balance Sheet
The following tables summarize our accounts receivable and other balances that are not separately presented in our condensed consolidated balance sheet that relate to the recognition of revenue and collection of the related cash, as well as deferred costs associated with our contracts with customers.
(in millions)September 30,
2020
December 31,
2019
Receivables, gross$11,110 $11,711 
Less: Allowance for doubtful accounts800 419 
Receivables, net$10,310 $11,292 
(in millions)September 30,
2020
December 31,
2019
Noncurrent receivables, net (included in other noncurrent assets, net)$1,138 $1,337 
Contract acquisition and fulfillment costs (included in other noncurrent assets, net)$1,043 $1,083 
Noncurrent deferred revenue (included in other noncurrent liabilities)$698 $618 
Note 4: Programming and Production Costs
Film and Television Costs
Cable Networks, Broadcast Television, Filmed Entertainment and Sky produce owned content or acquire the rights to programming from third parties, which are described as owned film and television costs and programming rights, respectively. We adopted new accounting guidance related to film and television costs in the first quarter of 2020 (see Note 8), and accordingly amounts presented below for periods in 2020 and the policy discussion reflect the updated accounting guidance, and amounts presented for 2019 reflect the accounting guidance in effect at that time. Under the new accounting guidance, we have determined that the predominant monetization strategy for the substantial majority of our content is on an individual basis.
Amortization of Film and Television Costs
(in millions)Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
Owned film and television costs $1,556 $4,883 
Programming rights $3,526 $7,774 
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Comcast Corporation
Capitalized Film and Television Costs
September 30, 2020December 31, 2019
(in millions)Film and Television CostsFilm CostsTelevision CostsTotal
Owned film and television costs:
Released, less amortization$3,578 $1,551 $2,810 $4,361 
Completed, not released147 187 — 187 
In production and in development2,608 1,314 1,162 2,476 
6,333 3,052 3,972 7,024 
Programming rights, less amortization6,408 5,786 
12,741 12,810 
Less: Current portion of programming rights— 3,877 
Film and television costs$12,741 $8,933 
The table below summarizes estimated future amortization expense for the capitalized film and television costs recorded in our condensed consolidated balance sheet as of September 30, 2020.
(in millions)Owned Film and Television CostsProgramming Rights
Completed, not released:
Remaining three months of 2020$20 
Released and programming rights:
Remaining three months of 2020$440 $1,739 
2021$901 $2,846 
2022$463 $760 
Capitalization and Recognition of Film and Television Costs
We capitalize costs for owned film and television content, including direct costs, production overhead, print costs, development costs and interest, as well as acquired libraries. Amortization for content predominantly monetized on an individual basis and accrued costs associated with participations and residual payments are recorded using the individual film forecast computation method, which recognizes the costs in the same ratio as the associated ultimate revenue. Estimates of ultimate revenue and total costs are based on anticipated release patterns, public acceptance and historical results for similar productions. Amortization for content predominantly monetized with other owned or licensed content is recorded based on estimated usage. In determining the method of amortization and estimated life of an acquired film or television library, we generally use the method and the life that most closely follow the undiscounted cash flows over the estimated life of the asset. We do not capitalize costs related to the distribution of a film in movie theaters or the licensing or sale of a film or television production, which primarily include costs associated with marketing and distribution.
We may enter into cofinancing arrangements with third parties to jointly finance or distribute certain of our film productions. Cofinancing arrangements can take various forms, but in most cases involve the grant of an economic interest in a film to an investor who owns an undivided copyright interest in the film. The number of investors and the terms of these arrangements can vary, although investors generally assume the full risks and rewards for the portion of the film acquired in these arrangements. We account for the proceeds received from the investor under these arrangements as a reduction of our capitalized film costs and the investor’s interest in the profit or loss of the film is recorded as either a charge or a benefit, respectively, in programming and production costs. The investor’s interest in the profit or loss of a film is recorded each period using the individual film forecast computation method.
We capitalize the costs of programming rights for content that we license but do not own when the license period begins, the content is made available for use and the costs of programming licenses are known. Programming rights are amortized as the associated programs are broadcast.
Owned film and television costs and programming rights are presented as noncurrent assets in film and television costs. We present amortization of film and television costs and accrued costs associated with participation and residual payments in programming and production costs.
When an event or a change in circumstance occurs that was known or knowable as of the balance sheet date and that indicates the fair value of either owned film and television content or programming rights is less than the unamortized costs in the
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Comcast Corporation
balance sheet, we determine the fair value and record an impairment charge to the extent the unamortized costs exceed the fair value. Owned film and television costs are assessed either individually or in identified film groups, for content predominantly monetized on an individual basis or with other content, respectively. The substantial majority of our owned film and television costs are evaluated for impairment on an individual title basis. Programming rights that are not part of a film group are generally assessed in packages, channels, or dayparts. A daypart is an aggregation of programs broadcast during a particular time of day or programs of a similar type. Programming rights licensed by Cable Networks are primarily tested on a channel basis for impairment, whereas programming rights licensed by Broadcast Television are tested on a daypart basis. Estimated fair values of owned film and television costs or programming rights are generally based on level 3 inputs including analysis of market participant estimates of future cash flows. We record charges related to impairments or content that is substantively abandoned to programming and production costs. Impairments of capitalized film and television costs were not material in any of the periods presented.
Sports Programming Rights
We recognize the costs of multiyear, live-event sports programming rights as the rights are utilized over the contract term based on estimated relative value. Estimated relative value is generally based on the ratio of the current period revenue to the estimated ultimate revenue or the terms of the contract. When cash payments, including advanced payments, exceed the relative value of the programming delivered, we recognize an asset in programming rights. Production costs incurred in advance of airing are also presented in programming rights.
Note 5: Earnings Per Share
Computation of Diluted EPS
 Three Months Ended September 30,
 20202019
(in millions, except per share data)Net Income
Attributable to
Comcast
Corporation
SharesPer Share
Amount
Net Income
Attributable to
Comcast
Corporation
SharesPer Share
Amount
Basic EPS attributable to Comcast
      Corporation shareholders
$2,019 4,577 $0.44 $3,217 4,551 $0.71 
Effect of dilutive securities:
Assumed exercise or issuance of shares relating to stock plans 51   68  
Diluted EPS attributable to
      Comcast Corporation
      shareholders
$2,019 4,628 $0.44 $3,217 4,619 $0.70 
 Nine Months Ended September 30,
 20202019
(in millions, except per share data)Net Income
Attributable to
Comcast
Corporation
SharesPer Share
Amount
Net Income
Attributable to
Comcast
Corporation
SharesPer Share
Amount
Basic EPS attributable to Comcast
      Corporation shareholders
$7,154 4,571 $1.57 $9,895 4,544 $2.18 
Effect of dilutive securities:
Assumed exercise or issuance of shares relating to stock plans 45   62  
Diluted EPS attributable to
      Comcast Corporation
      shareholders
$7,154 4,616 $1.55 $9,895 4,606 $2.15 
Diluted earnings per common share attributable to Comcast Corporation shareholders (“diluted EPS”) considers the impact of potentially dilutive securities using the treasury stock method. Our potentially dilutive securities include potential common shares related to our stock options and our restricted share units (“RSUs”). Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the combination of the option exercise price and the associated unrecognized compensation expense is greater than the average market price of our common stock. The amount of potential common shares related to our share-based compensation plans that were excluded from diluted EPS because their effect would
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Comcast Corporation
have been antidilutive was not material for the three and nine months ended September 30, 2020 or 2019.
Note 6: Long-Term Debt
As of September 30, 2020, our debt had a carrying value of $104.4 billion and an estimated fair value of $124.2 billion. The estimated fair value of our publicly traded debt was primarily based on level 1 inputs that use quoted market value for the debt. The estimated fair value of debt for which there are no quoted market prices was based on level 2 inputs that use interest rates available to us for debt with similar terms and remaining maturities.
Note 7: Significant Transactions
Universal Beijing Resort
We entered into an agreement with a consortium of Chinese state-owned companies to build and operate a Universal theme park and resort in Beijing, China (“Universal Beijing Resort”). We own a 30% interest in Universal Beijing Resort and the construction is being funded through a combination of debt financing and equity contributions from the investors in accordance with their equity interests. As of September 30, 2020, Universal Beijing Resort had $2.1 billion principal amount of a term loan outstanding under the debt financing agreement.
As of September 30, 2020, our condensed consolidated balance sheet included assets, primarily property and equipment, and liabilities, including the term loan, of Universal Beijing Resort totaling $4.5 billion and $3.0 billion, respectively.
Note 8: Recent Accounting Pronouncements
Film and Television Costs
In March 2019, the Financial Accounting Standards Board (“FASB”) updated the accounting guidance related to film and television costs. The updated guidance aligned the accounting for production costs of episodic television series with those of films, allowing for costs to be capitalized in excess of amounts of revenue contracted for each episode. The guidance also updated certain presentation and disclosure requirements for capitalized film and television costs, and when content is predominantly monetized with other owned or licensed content the guidance requires impairment testing for capitalized film and television costs to be performed at a film group level and amortization to be based on usage. We adopted the updated guidance on January 1, 2020 on a prospective basis and as a result, prior period amounts were not adjusted.
Following the adoption, we now present all film and television costs, including acquired programming rights previously classified as current, as noncurrent in the condensed consolidated balance sheet. The adoption of the updated accounting guidance did not have a material impact on our consolidated results of operations or financial position. See Note 4 for further information.
Credit Losses
In June 2016, the FASB updated the accounting guidance related to the measurement of credit losses on financial instruments, including trade receivables and loans. The updated guidance requires the recognition of credit losses on financial instruments based on an estimate of expected losses, replacing the incurred loss model in the prior guidance. We adopted the updated guidance on January 1, 2020 on a prospective basis, recording $124 million, net of tax, as a cumulative effect adjustment to retained earnings and as a result, prior period amounts were not adjusted. The adoption of the updated accounting guidance did not have a material impact on our consolidated results of operations or financial position for any periods presented.
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Comcast Corporation
Note 9: Investments
Investment and Other Income (Loss), Net
 Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)2020201920202019
Equity in net income (losses) of investees, net$(266)$(355)$(634)$(295)
Realized and unrealized gains (losses) on equity securities, net
118 174 65 582 
Other income (loss), net62 71 187 224 
Investment and other income (loss), net$(86)$(110)$(382)$511 
(in millions)September 30,
2020
December 31,
2019
Equity method$5,097 $5,347 
Marketable equity securities141 353 
Nonmarketable equity securities1,833 1,896 
Other investments138 1,796 
Total investments7,209 9,392 
Less: Current investments78 1,709 
Less: Investment securing collateralized obligation429 694 
Noncurrent investments$6,702 $6,989 
Equity Method
Atairos
Atairos follows investment company accounting and records its investments at their fair values each reporting period with the net gains or losses reflected in its statement of operations. We recognize our share of these gains and losses in equity in net income (losses) of investees, net. For the three and nine months ended September 30, 2020, we recognized losses of $107 million and $242 million, respectively. For the three and nine months ended September 30, 2019, we recognized a loss of $262 million and income of $6 million, respectively. For the nine months ended September 30, 2020 and 2019, we made cash capital contributions to Atairos totaling $184 million and $475 million, respectively. As of September 30, 2020 and December 31, 2019, our investment in Atairos was $3.3 billion and $3.2 billion, respectively.
Hulu and Collateralized Obligation
For the three and nine months ended September 30, 2020, we recognized losses of $104 million and $265 million, respectively, in equity in net income (losses) of investees, net. For the three and nine months ended September 30, 2019, we recognized losses of $101 million and $351 million, respectively, in equity in net income (losses) of investees, net and in the first quarter of 2019, we recognized a previously deferred dilution gain of $159 million in other income (loss), net. For the nine months ended September 30, 2019, we made cash capital contributions totaling $903 million to Hulu, inclusive of the funding to acquire our proportionate share of AT&T’s previously held 10% interest. There were no cash capital contributions made during the nine months ended September 30, 2020. As of September 30, 2020 and December 31, 2019, our investment was $429 million and $694 million, respectively.
In 2019, we borrowed $5.2 billion under a term loan facility due March 2024 which is fully collateralized by the minimum guaranteed proceeds of the put/call option related to our investment in Hulu. As of September 30, 2020, both the carrying value and fair value of our collateralized obligation was $5.2 billion. The estimated fair value was based on level 2 inputs that use interest rates for debt with similar terms and remaining maturities. We present our investment in Hulu and the term loan separately in our condensed consolidated balance sheet in the captions “investment securing collateralized obligation” and “collateralized obligation,” respectively. The recorded value of our investment reflects our historical cost in applying the equity method, and as a result, is less than its fair value.
Marketable Equity Securities
Peloton
Following Peloton’s initial public offering in September 2019, we recognized unrealized gains of $150 million in realized and unrealized gains (losses) on equity securities, net and presented our investment in Peloton in marketable equity securities, which was previously presented in nonmarketable equity securities. In the second quarter of 2020, we sold our investment in Peloton
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Comcast Corporation
and recognized gains of $67 million in realized and unrealized gains (losses) on equity securities, net. As of December 31, 2019, our investment in Peloton was $294 million.
Snap
In the fourth quarter of 2019, we sold our investment in Snap. For the three and nine months ended September 30, 2019, we recognized unrealized gains of $45 million and $303 million, respectively, in realized and unrealized gains (losses) on equity securities, net.
Other Investments
AirTouch
In April 2020, Verizon Americas, Inc., formerly known as AirTouch Communications, Inc. (“AirTouch”), redeemed the two series of preferred stock and we received cash payments totaling $1.7 billion. Subsequently, we redeemed and repurchased the three series of preferred shares issued by one of our consolidated subsidiaries and made cash payments totaling $1.8 billion.
As of December 31, 2019, our AirTouch investment was $1.6 billion, and the associated liability related to redeemable subsidiary preferred shares was $1.7 billion.
Note 10: Intangible Assets
  September 30, 2020December 31, 2019
(in millions)Weighted-Average
Original Useful Life
as of September 30, 2020
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Indefinite-Lived Intangible Assets:
Franchise rightsN/A$59,365 $59,365 
Trade namesN/A— 8,809 
FCC licensesN/A2,345 2,337 
Finite-Lived Intangible Assets:
Customer relationships14 years21,665 $(8,363)22,884 $(8,295)
Software5 years16,770 (8,786)15,357 (7,287)
Other agreements and rights28 years12,110 (1,256)3,958 (1,635)
Total $112,255 $(18,405)$112,710 $(17,217)
Estimated Amortization Expense of Finite-Lived Intangible Assets
(in millions)
  
Remaining three months of 2020$1,190 
2021$4,443 
2022$3,868 
2023$3,209 
2024$2,524 
Note 11: Supplemental Financial Information
Share-Based Compensation
Our share-based compensation plans consist primarily of awards of RSUs and stock options to certain employees and directors as part of our approach to long-term incentive compensation. Additionally, through our employee stock purchase plans, employees are able to purchase shares of our common stock at a discount through payroll deductions.
In March 2020, we granted 15.8 million RSUs and 59.9 million stock options related to our annual management awards. The weighted-average fair values associated with these grants were $42.47 per RSU and $6.53 per stock option.
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Comcast Corporation
Recognized Share-Based Compensation Expense
 Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)2020201920202019
Restricted share units$164 $143 $484 $437 
Stock options72 57 226 176 
Employee stock purchase plans30 23 
Total$245 $208 $740 $636 
As of September 30, 2020, we had unrecognized pretax compensation expense of $1.3 billion and $615 million related to nonvested RSUs and nonvested stock options, respectively.
Cash Payments for Interest and Income Taxes
 Nine Months Ended
September 30,
(in millions)20202019
Interest$2,845 $3,167 
Income taxes$2,298 $2,490 
Noncash Activities
During the nine months ended September 30, 2020:
we acquired $1.9 billion of property and equipment and intangible assets that were accrued but unpaid
we recorded a liability of $1.1 billion for a quarterly cash dividend of $0.23 per common share paid in October 2020
Cash, Cash Equivalents and Restricted Cash
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the condensed consolidated balance sheet to the total of the amounts reported in our condensed consolidated statement of cash flows.
(in millions)September 30,
2020
December 31,
2019
Cash and cash equivalents$13,707 $5,500 
Restricted cash included in other current assets11 42 
Restricted cash included in other noncurrent assets, net19 47 
Cash, cash equivalents and restricted cash, end of period$13,737 $5,589 
Accumulated Other Comprehensive Income (Loss)
(in millions)September 30,
2020
September 30,
2019
Unrealized gains (losses) on marketable securities$$
Deferred gains (losses) on cash flow hedges(68)162 
Unrecognized gains (losses) on employee benefit obligations241 301 
Cumulative translation adjustments34 (1,629)
Accumulated other comprehensive income (loss), net of deferred taxes$212 $(1,159)
Note 12: Commitments and Contingencies
Redeemable Subsidiary Preferred Stock
As of September 30, 2020, the fair value of the NBCUniversal Enterprise redeemable subsidiary preferred stock was $731 million. The estimated fair value is based on level 2 inputs that use pricing models whose inputs are derived primarily from or corroborated by observable market data through correlation or other means for substantially the full term of the financial instrument.
Contingencies
We are subject to legal proceedings and claims that arise in the ordinary course of our business. While the amount of ultimate liability with respect to such actions is not expected to materially affect our results of operations, cash flows or financial position, any litigation resulting from any such legal proceedings or claims could be time-consuming and injure our reputation.
16

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
We are a global media and technology company with three primary businesses: Comcast Cable, NBCUniversal, and Sky. We present our operations for (1) Comcast Cable in one reportable business segment, referred to as Cable Communications; (2) NBCUniversal in four reportable business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks (collectively, the “NBCUniversal segments”); and (3) Sky in one reportable business segment.
Cable Communications Segment
Cable Communications is a leading provider of high-speed internet, video, voice, wireless, and security and automation services to residential customers under the Xfinity brand; we also provide these and other services to business customers and sell advertising. As of September 30, 2020, our cable systems had 32.7 million total customer relationships, including 30.3 million residential and 2.4 million business customer relationships, and passed more than 59 million homes and businesses. Revenue is generated primarily from residential and business customers that subscribe to our services, which are marketed individually and as bundled services, and from the sale of advertising.
NBCUniversal Segments
NBCUniversal is one of the world’s leading media and entertainment companies that develops, produces and distributes entertainment, news and information, sports, and other content for global audiences, and owns and operates theme parks worldwide.
Cable Networks
Cable Networks consists primarily of our national cable networks that provide a variety of entertainment, news and information, and sports content; our regional sports and news networks; our international cable networks; our cable television studio production operations; and various digital properties. Revenue is generated primarily from the distribution of our cable network programming to traditional and virtual multichannel video providers; from the sale of advertising on our cable networks and digital properties; from the licensing of our owned programming, including programming from our cable television studio production operations, to cable and broadcast networks and subscription video on demand services; and from the sale of our owned content on standard-definition DVDs and Blu-ray discs (together, “DVDs”) and through digital distribution services such as iTunes.
Broadcast Television
Broadcast Television consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo owned local broadcast television stations, the NBC Universo national cable network, our broadcast television studio production operations, and various digital properties. Revenue is generated primarily from the sale of advertising on our networks and digital properties, from the licensing of programming, including to cable and broadcast networks as well as to subscription video on demand services; from the fees received under retransmission consent agreements and associated fees received from NBC-affiliated and Telemundo-affiliated local broadcast television stations; and from the sale of our owned programming on DVDs and through digital distribution services.
Filmed Entertainment
Filmed Entertainment primarily produces, acquires, markets and distributes filmed entertainment worldwide. Our films are produced primarily under the Universal Pictures, Illumination, DreamWorks Animation and Focus Features names. Revenue is generated primarily from the worldwide distribution of our produced and acquired films for exhibition in movie theaters, from the licensing of produced and acquired films through various distribution platforms, and from the sale of produced and acquired films on DVDs and through digital distribution services. Filmed Entertainment also generates revenue from Fandango, a movie ticketing and entertainment business, consumer products, the production and licensing of live stage plays, and the distribution of filmed entertainment produced by third parties.
Theme Parks
Theme Parks consists primarily of our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. In addition, we are developing a theme park in Beijing, China along with a consortium of Chinese state-owned companies, and an additional theme park in Orlando, Florida. Revenue is generated primarily from guest spending at our Universal theme parks.
17

Sky Segment
Sky is one of Europe’s leading entertainment companies, which primarily includes a direct-to-consumer business, providing video, high-speed internet, voice and wireless phone services, and a content business, operating entertainment networks, the Sky News broadcast network and Sky Sports networks. As of September 30, 2020, Sky had 23.7 million retail customer relationships.
Corporate and Other
Our other business interests consist primarily of the operations of Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania, and other business initiatives, such as Peacock, which was made available to Comcast customers in April 2020 and launched nationally in July 2020.
Impacts of COVID-19
The novel coronavirus disease 2019 (“COVID-19”) and measures taken to prevent its spread across the globe continue to impact our businesses in a number of ways. Our Cable Communications results of operations were strong in the nine months ended September 30, 2020, despite having been affected by the significant deterioration in domestic economic conditions and by the costs associated with our support of customer connectivity as people continued to work and learn remotely from home. COVID-19 had material negative impacts on NBCUniversal and Sky results of operations during the second and third quarters of 2020 primarily due to the temporary closure of our theme parks and the postponement and cancellation of many sporting events. We continue to implement and evaluate cost initiatives across our businesses that have impacted and will continue to impact our results of operations; certain costs incurred by our businesses in response to COVID-19, including severance and restructuring charges, are presented in Corporate and Other. We expect the impacts of COVID-19 will continue to have a material adverse impact on our consolidated results of operations over the near to medium term.
Cable Communications
Our distribution network to date has performed well under the stress of increased traffic and peak usage driven by increased video streaming, gaming and videoconferencing as more customers work and learn remotely from home.
We incurred costs in 2020 associated with compensating personnel in roles affected by COVID-19, primarily during the first half of the year. These costs included additional compensation for frontline personnel who worked to keep our customers connected to our services and compensation for certain personnel who were unable to work due to the closing or suspension of operations.
Beginning in March 2020 and continuing through the end of December 2020, new qualifying customers for Internet Essentials, our low-income internet adoption program, will receive 60 days of free internet services. We also implemented programs, primarily during the second quarter of 2020, under which we elected to waive certain fees and to not disconnect internet, voice or wireless services for customers for nonpayment, and we are now providing customers a variety of flexible and extended payment options. As a result of these programs, our customer metrics for 2020 do not include customers in the free Internet Essentials offer or certain high-risk customers who continued to receive service following nonpayment. The number of customers excluded from our customer metrics was highest as of June 30, 2020 and these customers were excluded from second quarter net additions. The number of such customers decreased in the third quarter as some of these customers began paying for service, resulting in customer net additions, or disconnected and no longer receive service. We expect the number of excluded customers to continue to decrease in the fourth quarter.
Professional sports leagues have generally resumed, some with a reduced schedule for the remainder of the interrupted seasons. Certain of our programming distribution agreements with regional sports networks include contractual adjustment provisions if a minimum number of sporting events does not occur. In the second and third quarters of 2020, our programming expenses were reduced as a result of these provisions, and our revenue was negatively impacted in similar amounts as a result of adjustments that we have begun passing through to our customers in the fourth quarter of 2020.
The deterioration of economic conditions and increased economic uncertainty resulting from COVID-19 have resulted in reduced demand for certain of our residential and business services and reduced spending from advertisers, which have had, and likely will continue to have, negative impacts on our revenue over the near to medium term. In addition, we believe there is increased risk associated with collections on our outstanding receivables, and we have incurred, and expect to continue to incur, increases in our bad debt expense compared to the prior year periods.
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NBCUniversal
The temporary closure of all of our theme parks had the most significant impact on our revenue and Adjusted EBITDA for the nine months ended September 30, 2020 on a consolidated basis. Our parks in Orlando and Japan reopened with limited capacity in June 2020, while our park in Hollywood remains closed. We expect the results of operations at our theme parks will continue to be negatively impacted in the near to medium term, and we cannot predict when the Hollywood park will reopen, if any reopened parks will remain open or the level of attendance at any reopened parks. In addition, although we currently expect that Universal Beijing Resort will open in 2021, we have delayed certain construction projects, including the development of the Epic Universe theme park in Orlando.
The deterioration of economic conditions caused by COVID-19 resulted in significant reductions in advertising spend by our customers in the Cable Networks and Broadcast Television segments in the second and third quarters of 2020, and we expect this trend to continue over the near to medium term. These conditions have also resulted, and may continue to result, in an acceleration of subscriber losses at our networks.
We incurred costs in 2020 associated with compensating personnel who were unable to work due to the closing or suspension of operations, primarily during the first half of the year, including at our theme parks and at our production studios.
The postponement and cancellation of many sporting events and professional sports seasons impacted our first and second quarter 2020 results of operations, since both advertising revenues and costs associated with broadcasting these programs were not recognized. Professional sports leagues have generally resumed in the third quarter of 2020, some with reduced numbers of events for the remainder of the interrupted seasons. Certain of our sports programming rights agreements and distribution agreements with multichannel video providers include contractual provisions if a minimum number of events does not occur. Our distribution revenue in the second and third quarters of 2020 was negatively impacted as a result of credits accrued relating to these provisions; and the programming costs that we recognize as the remaining events occur, which were primarily in the third quarter of 2020, will also be impacted. When, or the extent to which, sporting events will occur for the remainder of 2020 and into 2021 will impact the timing, and potentially the amount, of revenue and expense recognition. In addition, the 2020 Tokyo Olympics have been postponed from the third quarter of 2020 to the third quarter of 2021, which will result in a corresponding delay of the associated revenue and costs.
The creation and availability of our film and television programming in the United States and globally have been disrupted, including from the suspension of studio production operations in the first half of 2020. In the third quarter of 2020, our studio production operations resumed at a limited capacity. Additionally, with the temporary closure of many movie theaters worldwide, we have delayed or altered the theatrical distribution strategy for certain of our films, both domestically and internationally. Delays in theatrical releases will affect both current and future periods as a result of corresponding delays in subsequent content licensing windows. We expect results of operations in our Filmed Entertainment segment to continue to be negatively impacted over the near to medium term as a result of COVID-19.
Sky
Many sporting events and professional sports seasons were postponed beginning in the second half of the first quarter of 2020, with certain sports, including European soccer, resuming in May and June 2020, which resulted in significant impacts on Sky’s results of operations in the first, second and third quarters of 2020. Direct-to-consumer revenue has been negatively impacted as a result of lower sports subscription revenue and we expect continued negative impacts as a result of the impacts of COVID-19 on the reopening plans and the extent of reopening of our commercial customers. Additionally, significant costs associated with broadcasting these programs were not recognized as a result of the sporting events not occurring in the first quarter and for most of the second quarter. These costs were generally recognized in the third quarter of 2020; and although sporting events have resumed, COVID-19 continues to result in uncertainty in the ultimate timing of when, or the extent to which, sporting events will occur for the remainder of 2020; their broadcast is expected to impact the timing, and potentially the amount, of revenue and expense recognition.
We temporarily suspended certain sales channels due to COVID-19, which negatively impacted net customer additions and revenue in the first and second quarters of 2020. Our sales channels generally resumed operations in June.
COVID-19 has resulted in the deterioration of economic conditions and increased economic uncertainty in the U.K. and Europe, intensifying what was an already deteriorating economic and advertising environment. These conditions negatively impacted revenue in the nine months ended September 30, 2020, and we expect will continue to reduce advertising spend and consumer demand for our services for the remainder of 2020. In addition, there is increased risk associated with collections on our outstanding receivables, and we have incurred and expect to continue to incur increases in our bad debt expense.
19

Global financial markets have been volatile and domestic and global economic conditions continue to show signs of material weakness. At this point, it is impossible to predict the extent and duration of these and any other impacts of COVID-19 to our businesses, or the degree to which demand for our products and services, or supply of key inputs to those products and services, will be affected. This uncertainty makes it challenging for management to estimate with precision the future performance of our businesses.
As of September 30, 2020, we evaluated whether the facts and circumstances and available information resulted in the need for an impairment assessment for any of our long-lived assets and concluded no assessment was required. Refer to the Critical Accounting Judgments and Estimates section for discussion of our impairment testing of goodwill and cable franchise rights. We will continue to evaluate the impacts of COVID-19 to our businesses, including the impacts of overall economic conditions, which could result in the recognition of an impairment charge in the future. Our results for the nine months ended September 30, 2020 were impacted by significant losses and gains as a result of the volatility in the market values for publicly traded equity securities underlying our investments.
Liquidity
Although negatively impacted by the effects of COVID-19, we expect that our businesses will continue to generate significant cash flow from operating activities and we believe that these cash flows, together with our existing cash, cash equivalents and investments, available borrowings under our existing credit facilities, and our ability to obtain future external financing, will be sufficient for us to meet our current and long-term liquidity and capital requirements. However, we expect the timing of certain priorities to be impacted, such as the pace of our debt reduction efforts and return to share repurchases, and the delay of certain capital projects.
Competition
All of our businesses operate in intensely competitive, consumer-driven and rapidly changing environments and compete with a growing number of companies that provide a broad range of communications products and services, and entertainment, news and information content to consumers. Technological changes are further intensifying and complicating the competitive landscape and challenging existing business models. In particular, consumers are increasingly turning to online sources for viewing and purchasing content, which has and likely will continue to reduce the number of our video customers and subscribers to our cable networks even as it makes our high-speed internet services more valuable to consumers. In addition, the increasing number of entertainment choices available to consumers has intensified audience fragmentation and disaggregated the way that content traditionally has been viewed by consumers. This increase has caused and likely will continue to cause audience ratings declines at our programming channels.
For additional information on the competition our businesses face, see our 2019 Annual Report on Form 10-K and refer to Item 1: Business and Item 1A: Risk Factors. Within the Business section, refer to the “Competition” discussion, and within the Risk Factors section, refer to the risk factors entitled “Our businesses operate in highly competitive and dynamic industries, and our businesses and results of operations could be adversely affected if we do not compete effectively” and “Changes in consumer behavior driven by online video distribution platforms for viewing content continue to adversely affect our businesses and challenge existing business models.”
Seasonality and Cyclicality
Each of our businesses is typically subject to seasonal and cyclical variations. Cable Communications’ results are impacted by the seasonal nature of residential customers receiving our services in college and vacation markets. This generally results in fewer net customer relationship additions in the second quarter of each year.
Revenue and operating costs and expenses (comprised of total costs and expenses, excluding depreciation and amortization expense and other operating gains) are cyclical as a result of our periodic broadcasts of major sporting events, such as the Olympic Games, which affect Cable Networks and Broadcast Television, and the Super Bowl, which affects Broadcast Television. In particular, advertising revenue increases due to increased demand for advertising time for these events and distribution revenue increases in the period of broadcasts of the Olympic Games. Operating costs and expenses also increase as a result of our production costs for these broadcasts and the amortization of the related rights fees.
Revenue in Cable Communications, Cable Networks, Broadcast Television and Sky is also subject to cyclical advertising patterns and changes in viewership levels. Advertising revenue in the U.S. is generally higher in the second and fourth quarters of each year and in even-numbered years due to increases in consumer advertising in the spring and in the period leading up to and including the holiday season and advertising related to candidates running for political office and issue-oriented advertising, respectively. Revenue in Cable Networks and Broadcast Television fluctuates depending on the timing of when our programming is aired, which typically results in higher advertising revenue in the second and fourth quarters of each year.
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Revenue at Sky has seasonally higher audience levels in winter months and increased competition during major sporting events where public service broadcasters lease the rights, such as the Olympic Games and the FIFA World CupTM.
Revenue in Filmed Entertainment fluctuates due to the timing, nature and number of films released in movie theaters, on DVDs, and through various other distribution platforms. Release dates are determined by several factors, including competition and the timing of vacation and holiday periods. As a result, revenue tends to be seasonal, with increases experienced each year during the summer months and around the holiday season. Content licensing revenue in our Cable Networks, Broadcast Television and Filmed Entertainment segments also fluctuates due to the timing of when our content is made available to licensees.
Revenue in Theme Parks fluctuates with changes in theme park attendance that result from the seasonal nature of vacation travel and weather variations, local entertainment offerings and the opening of new attractions, as well as with changes in currency exchange rates. Theme Parks generally experiences peak attendance during the spring holiday period, the summer months when schools are closed and the Christmas holiday season.
Sky’s results are impacted by the seasonal nature of residential customers receiving direct-to-home (“DTH”) and over the top (“OTT”) video services, including the start of the new soccer seasons and the Christmas holiday. This generally results in greater net customer relationship additions and higher subscriber acquisition costs in the second half of each year due to higher marketing expenses.
Exclusive sports rights play a key role within Sky’s wider content strategy. In Europe, broadcasting rights for major sports are usually tendered through a competitive auction process, with the winning bidder or bidders acquiring rights over a three to five-year period. This creates some level of cyclicality for Sky, although the staggered timing of major sports rights auctions usually gives Sky time to react to any material changes in the competitive dynamics of the prevailing market. Certain of Sky’s significant sports rights agreements require payments at the start of each season, resulting in increases in sports rights payments in the third and fourth quarter of each year.
21

Consolidated Operating Results
 Three Months Ended
September 30,
Increase/
(Decrease)
Nine Months Ended
September 30,
Increase/
(Decrease)
(in millions, except per share data)20202019%20202019%
Revenue$25,532 $26,827 (4.8)%$75,856 $80,544 (5.8)%
Costs and Expenses:
Programming and production8,565 8,316 3.0 23,683 25,140 (5.8)
Other operating and administrative
8,059 8,090 (0.4)23,959 24,076 (0.5)
Advertising, marketing and promotion
1,512 1,901 (20.5)4,791 5,674 (15.6)
Depreciation2,122 2,124 (0.1)6,328 6,561 (3.6)
Amortization
1,198 1,056 13.4 3,520 3,215 9.5 
Operating income4,076 5,340 (23.7)13,575 15,878 (14.5)
Interest expense (1,220)(1,167)4.5 (3,544)(3,454)2.6 
Investment and other income (loss), net
(86)(110)(21.9)(382)511 (174.6)
Income before income taxes2,770 4,063 (31.8)9,649 12,935 (25.4)
Income tax expense
(739)(775)(4.6)(2,385)(2,812)(15.2)
Net income2,031 3,288 (38.2)7,264 10,123 (28.2)
Less: Net income attributable to noncontrolling interests and redeemable subsidiary preferred stock
12 71 (83.6)110 228 (51.9)
Net income attributable to Comcast Corporation
$2,019 $3,217 (37.2)%$7,154 $9,895 (27.7)%
Basic earnings per common share attributable to Comcast Corporation shareholders
$0.44 $0.71 (38.0)%$1.57 $2.18 (28.0)%
Diluted earnings per common share attributable to Comcast Corporation shareholders
$0.44 $0.70 (37.1)%$1.55 $2.15 (27.9)%
Adjusted EBITDA(a)
$7,583 $8,553 (11.3)%$23,640 $25,822 (8.5)%
All percentages are calculated based on actual amounts. Minor differences may exist due to rounding. Percentage changes that are considered not meaningful are denoted with NM.
(a)Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section on page 36 for additional information, including our definition and our use of Adjusted EBITDA, and for a reconciliation from net income attributable to Comcast Corporation to Adjusted EBITDA.
Consolidated Revenue
Theme Parks, Filmed Entertainment and Cable Networks drove decreases in consolidated revenue for the three months ended September 30, 2020, which were partially offset by increases in revenue in Cable Communications, Sky and Broadcast Television.
Theme Parks, Filmed Entertainment, Sky and Cable Networks drove decreases in consolidated revenue for the nine months ended September 30, 2020, which were partially offset by increases in revenue in Cable Communications and Broadcast Television.
Revenue for our segments and other businesses is discussed separately below under the heading “Segment Operating Results.”
Consolidated Costs and Expenses
Filmed Entertainment, Theme Parks and Cable Communications drove decreases in consolidated operating costs and expenses for the three months ended September 30, 2020, which were partially offset by increases in operating costs and expenses in Sky, Broadcast Television and Cable Networks.
Filmed Entertainment, Theme Parks, Cable Networks, Sky and Cable Communications drove decreases in consolidated operating costs and expenses for the nine months ended September 30, 2020, which were partially offset by increases in operating costs and expenses in Broadcast Television.
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Operating costs and expenses for our segments and our corporate operations, businesses development initiatives and other businesses are discussed separately below under the heading “Segment Operating Results.”
Consolidated Depreciation and Amortization Expense
 Three Months Ended
September 30,
Increase/
(Decrease)
Nine Months Ended
September 30,
Increase/
(Decrease)
(in millions)20202019%20202019%
Cable Communications$1,952 $1,967 (0.7)%$5,835 $6,038 (3.4)%
NBCUniversal576 537 7.3 1,715 1,579 8.6 
Sky750 644 16.5 2,188 2,058 6.3 
Corporate and Other42 32 26.7 110 101 6.9 
Comcast Consolidated$3,320 $3,180 4.4 %$9,848 $9,776 0.7 %
Consolidated depreciation and amortization expense increased for the three and nine months ended September 30, 2020 compared to the same periods in 2019 primarily due to an increase in the amortization of certain trade names beginning in the first quarter of 2020, which were previously accounted for as indefinite-lived intangible assets (see Note 10), partially offset by a decrease in depreciation at Cable Communications related to a reduction in capital expenditures on customer premise equipment. During the first quarter of 2019, we recorded adjustments to the purchase price allocation of Sky, primarily related to intangible assets and property and equipment. This change resulted in an adjustment recorded in the first quarter of 2019 related to the fourth quarter of 2018 that increased depreciation and amortization expense by $53 million.
Amortization expense from acquisition-related intangible assets totaled $574 million and $1.7 billion for the three and nine months ended September 30, 2020, respectively. Amortization expense from acquisition-related intangible assets totaled $486 million and $1.5 billion for the three and nine months ended September 30, 2019, respectively. Amounts primarily relate to customer relationship intangible assets recorded in connection with the Sky transaction in the fourth quarter of 2018 and the NBCUniversal transaction in 2011.
Consolidated Interest Expense
Interest expense increased for the three months ended September 30, 2020 compared to the same period in 2019 primarily due to a $220 million charge recorded in the third quarter of 2020 related to the early redemption of senior notes due 2022 and 2023, partially offset by lower weighted average interest rates in the current year period. Interest expense increased for the nine months ended September 30, 2020 compared to the same period in 2019 primarily due to $360 million of charges recorded in the first and third quarters of 2020 related to the early redemption of senior notes due 2021 to 2023, partially offset by decreases in our debt outstanding.
Consolidated Investment and Other Income (Loss), Net
 Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)2020201920202019
Equity in net income (losses) of investees, net$(266)$(355)$(634)$(295)
Realized and unrealized gains (losses) on equity securities, net
118 174 65 582 
Other income (loss), net62 71 187 224 
Total investment and other income (loss), net$(86)$(110)$(382)$511 
Equity in Net Income (Losses) of Investees, Net
The change in equity in net income (losses) of investees, net for the three and nine months ended September 30, 2020 compared to the same periods in 2019 were primarily due to our equity method investments in Atairos and Hulu. The income (losses) at Atairos were driven by fair value adjustments on its underlying investments. The equity in net income (losses) of Atairos and Hulu for the three and nine months ended September 30, 2020 and 2019 are presented in the table below.
 Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)2020201920202019
Atairos$(107)$(262)$(242)$
Hulu$(104)$(101)$(265)$(351)
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Realized and Unrealized Gains (Losses) on Equity Securities, Net
The changes in realized and unrealized gains (losses) on equity securities, net for the three and nine months ended September 30, 2020 compared to the same periods in 2019 were primarily due to gains related to our investment in Peloton and gains and losses related to other investments in the current year compared to gains related to our investments in Snap and Peloton in the prior year. See Note 9.
Other Income (Loss), Net
The decrease in other income (loss), net for the three months ended September 30, 2020 compared to the same period in 2019 primarily relates to higher foreign exchange remeasurement gains in 2020, more than offset by a gain of $60 million recorded in the prior year period related to the dilution of our Hulu ownership. The decrease in other income (loss), net for the nine months ended September 30, 2020 compared to the same period in 2019 primarily relates to gains of $219 million recorded in the first and third quarters of 2019 related to the dilution of our Hulu ownership, partially offset by $90 million of losses due to equity method investment impairments recorded in the second and third quarters of 2019 and higher foreign exchange remeasurement gains in 2020. See Note 9.
Consolidated Income Tax Expense
Income tax expense for the three and nine months ended September 30, 2020 and 2019 reflects an effective income tax rate that differs from the federal statutory rate primarily due to state and foreign income taxes and adjustments associated with uncertain tax positions. The decrease in income tax expense for the three and nine months ended September 30, 2020 compared to the same periods in 2019 was primarily due to lower income before income taxes in 2020, partially offset by the impact of tax law changes in the third quarter of 2020 and a benefit from state tax adjustments recognized in the third quarter of 2019.
Segment Operating Results
Our segment operating results are presented based on how we assess operating performance and internally report financial information. We use Adjusted EBITDA as the measure of profit or loss for our operating segments. See Note 2 for our definition of Adjusted EBITDA and a reconciliation from the aggregate amount of Adjusted EBITDA for our reportable business segments to consolidated income before income taxes.
Cable Communications Segment Results of Operations
 Three Months Ended
September 30,
Increase/
(Decrease)
(in millions)20202019$%
Revenue
Residential:
High-speed internet$5,198 $4,721 $477 10.1 %
Video5,421 5,541 (120)(2.1)
Voice876 963 (87)(9.0)
Wireless400 326 74 22.8 
Business services2,049 1,971 78 4.0 
Advertising674 603 71 11.8 
Other382 459 (77)(17.2)
Total revenue15,000 14,584 416 2.9 
Operating costs and expenses
Programming3,296 3,315 (19)(0.6)
Technical and product support1,980 2,066 (86)(4.2)
Customer service598 628 (30)(4.8)
Advertising, marketing and promotion929 1,024 (95)(9.2)
Franchise and other regulatory fees421 408 13 3.3 
Other1,365 1,342 23 1.6 
Total operating costs and expenses8,589 8,783 (194)(2.2)
Adjusted EBITDA
$6,411 $5,801 $610 10.5 %
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 Nine Months Ended
September 30,
Increase/
(Decrease)
(in millions)20202019$%
Revenue
Residential:
High-speed internet$15,199 $13,961 $1,238 8.9 %
Video16,468 16,763 (295)(1.8)
Voice2,652 2,935 (283)(9.6)
Wireless1,069 795 274 34.5 
Business services6,096 5,795 301 5.2 
Advertising1,659 1,766 (107)(6.1)
Other1,203 1,299 (96)(7.5)
Total revenue44,346 43,314 1,032 2.4 
Operating costs and expenses
Programming9,978 10,106 (128)(1.3)
Technical and product support5,925 5,844 81 1.4 
Customer service1,836 1,877 (41)(2.2)
Advertising, marketing and promotion2,717 3,000 (283)(9.4)
Franchise and other regulatory fees1,225 1,189 36 3.0 
Other4,002 3,915 87 2.2 
Total operating costs and expenses25,683 25,931 (248)(1.0)
Adjusted EBITDA
$