COMCAST CORPORATION Management's discussion and analysis of financial condition and results of operations is provided as a supplement to, and should be read in conjunction with, the consolidated financial statements and related notes to enhance the understanding of our operations and our present business environment. For more information about our company's operations and the risks facing our businesses, see Item 1: Business and Item 1A: Risk Factors, respectively. Refer to Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2021 Annual Report on Form 10-K for management's discussion and analysis of financial condition and results of operations for the fiscal year 2021 compared to fiscal year 2020.
Overview
We are a global media and technology company with three primary businesses:
Consolidated Revenue, Net Income Attributable toComcast Corporation and Adjusted EBITDA(a) (in billions) Revenue Net Income Attributable to Comcast Corporation Adjusted EBITDA
[[Image Removed: cmcsa-20221231_g6.jpg]]
(a)Adjusted EBITDA is a financial measure that is not defined by generally accepted accounting principles inthe United States ("GAAP"). Refer to the "Non-GAAP Financial Measure" section on page 52 for additional information, including our definition and our use of Adjusted EBITDA, and for a reconciliation from net income attributable toComcast Corporation to Adjusted EBITDA. Revenue, Net Income Attributable toComcast Corporation and Adjusted EBITDA charts are not presented on the same scale.
2022 Developments
The following are the more significant developments in our businesses during 2022:
Cable Communications
•Revenue increased 3.1% to
•Adjusted EBITDA increased 4.6% to$29.4 billion primarily due to increases in revenue and decreases in programming expenses, partially offset by increases in other expenses and in technical and product support expenses.
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•Operating margin increased from 43.7% to 44.3%.
•Total customer relationships increased by 75,000, total wireless lines increased by 1.3 million, total broadband customers increased by 250,000, and total video customers decreased by 2.0 million.
•Capital expenditures increased 9.2% to
NBCUniversal
•Total NBCUniversal revenue increased 14.2% to
•Media segment revenue increased 2.7% to$23.4 billion and Adjusted EBITDA decreased 29.7% to$3.2 billion , including the impact of our broadcasts of theBeijing Olympics ,Super Bowl and FIFA World Cup in 2022 and theTokyo Olympics in 2021. Excluding$1.7 billion and$1.8 billion of revenue associated with our broadcasts of theBeijing Olympics ,Super Bowl and FIFA World Cup in 2022 and theTokyo Olympics in 2021, respectively, revenue in the Media segment increased 3.0%, primarily due to increases in distribution and other revenue.
•Media segment results include the operations of Peacock, which in 2022
generated revenue of
•Studios segment revenue increased 23.0% to$11.6 billion and Adjusted EBITDA increased 6.6% to$942 million . Revenue increased due to increases in content licensing, theatrical, and home entertainment and other revenue. Studios revenue included licenses of content to our Media and other segments, which are eliminated in consolidation. •Theme Parks segment revenue increased 49.3% to$7.5 billion and Adjusted EBITDA increased from$1.3 billion to$2.7 billion , reflecting improved operating conditions related to COVID-19 compared to the prior year and the operations ofUniversal Beijing Resort , which opened inSeptember 2021 .
Sky
•Revenue decreased 11.5% to$17.9 billion . Excluding the impact of foreign currency, Sky revenue decreased due to decreases in direct-to-consumer, content and advertising revenue. •Adjusted EBITDA increased 7.0% to$2.5 billion . Excluding the impact of foreign currency, Sky Adjusted EBITDA increased due to decreases in programming and production expenses, which more than offset increases in direct network costs and other expenses and the decreases in revenue. •We recorded goodwill and long-lived asset impairments related to our Sky segment totaling$8.6 billion in connection with our 2022 annual impairment assessment. The impairments primarily reflected an increased discount rate and reduced estimated future cash flows as a result of macroeconomic conditions in Sky's territories. Other •Our consolidated joint venture with Charter Communications, now named Xumo, was formed inJune 2022 to focus on developing and offering a streaming platform on a variety of devices, including XClass TV smart televisions, and also operates the Xumo Play streaming service.
•SkyShowtime, our direct-to-consumer streaming service joint venture with
Paramount Global, launched in select European markets beginning in
•Corporate and Other Adjusted EBITDA losses of$1.4 billion remained consistent with the prior year primarily due to increased losses fromSky Glass and Xumo, offset by lower administrative costs. •Our Board of Directors approved a new share repurchase program authorization of$20 billion , effectiveSeptember 13, 2022 . Repurchased a total of 332 million shares of our Class A common stock for$13.0 billion in 2022 compared to a total of 73.2 million shares of our Class A common stock for$4.0 billion in 2021. Raised our dividend by$0.08 to$1.08 per share on an annualized basis inJanuary 2022 and paid$4.7 billion of dividends in 2022.
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COVID-19 has impacted our businesses in a number of ways, affecting the comparability of periods included in this report. The most significant continuing impacts have resulted from temporary restrictions and closures at our international theme parks. The continuing effects of COVID-19, in addition to worseningU.S. , European and global economic conditions and consumer sentiment, may adversely impact demand for our products and services, including advertising, and our results of operations over the near to medium term. In addition, changes in foreign currency exchange rates have impacted our results of operations in our Sky andTheme Parks segments as a result of the strengthening of theU.S. dollar in 2022 compared to the prior year.
Consolidated Operating Results
Year ended December 31 (in millions, except % Change % Change per share data) 2022 2021 2020 2021 to 2022 2020 to 2021 Revenue$ 121,427 $ 116,385 $ 103,564 4.3 % 12.4 % Costs and Expenses: Programming and production 38,213 38,450 33,121 (0.6) 16.1 Other operating and administrative 38,263 35,619 33,109 7.4 7.6 Advertising, marketing and promotion 8,506 7,695 6,741 10.5 14.2 Depreciation 8,724 8,628 8,320 1.1 3.7 Amortization 5,097 5,176 4,780 (1.5) 8.3 Goodwill and long-lived assets impairments 8,583 - - NM NM Total costs and expenses 107,385 95,568 86,071 12.4 11.0 Operating income 14,041 20,817 17,493 (32.5) 19.0 Interest expense (3,896) (4,281) (4,588) (9.0) (6.7)
Investment and other income (loss), net (861) 2,557 1,160
NM 120.4
Income before income taxes 9,284 19,093 14,065 (51.4) 35.7
Income tax expense (4,359) (5,259) (3,364) (17.1) 56.3
Net income 4,925 13,833 10,701 (64.4) 29.3
Less: Net income (loss) attributable to
noncontrolling interests (445) (325) 167 36.9 NM
Net income attributable to Comcast
Corporation $ 5,370 $ 14,159 $ 10,534 (62.1) % 34.4 %
Basic earnings per common share
attributable to Comcast Corporation
shareholders $ 1.22 $ 3.09 $ 2.30 (60.5) % 34.3 %
Diluted earnings per common share
attributable to Comcast Corporation
shareholders $ 1.21 $ 3.04 $ 2.28 (60.2) % 33.3 %
Adjusted EBITDA(a) $ 36,459 $ 34,708 $ 30,826 5.0 % 12.6 %
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 Measure" section on page 52 for additional information, including our definition and our use of Adjusted EBITDA, and for a reconciliation from net income attributable toComcast Corporation to Adjusted EBITDA.
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Consolidated Revenue
The following graph illustrates the contributions to the change in consolidated revenue made by ourCable Communications , NBCUniversal and Sky segments, as well as by Corporate and Other activities, including eliminations.
[[Image Removed: cmcsa-20221231_g7.jpg]]
The primary drivers of the change in revenue from 2021 to 2022 were as follows:
•Growth in our NBCUniversal segments driven by increased revenue in the Theme Parks, Studios and Media segments.
•Growth in our
•Growth in Corporate and Other revenue driven by sales of
•A decrease in our Sky segment driven by decreased direct-to-consumer, content and advertising revenue, as well as the impact of foreign currency translation.
Revenue for our segments and other businesses is discussed separately below under the heading "Segment Operating Results."
Consolidated Costs and Expenses
The following graph illustrates the contributions to the change in consolidated costs and expenses, excluding depreciation expense, amortization expense, and goodwill and long-lived asset impairments, made by ourCable Communications , NBCUniversal and Sky segments, as well as by Corporate and Other activities, including adjustments and eliminations.
[[Image Removed: cmcsa-20221231_g8.jpg]]
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The primary drivers of the change in consolidated costs and expenses, excluding depreciation expense, amortization expense, and goodwill and long-lived asset impairments, from 2021 to 2022 were as follows:
•An increase in NBCUniversal expenses due to increases in our Studios, Media and
•An increase inCable Communications segment expenses due to increased other expenses and technical and product support costs, partially offset by decreases in programming expense; franchise and other regulatory fees; advertising, marketing and promotion expenses; and customer service expenses.
•An increase in Corporate and Other expenses primarily due to costs related to
•A decrease in Sky segment expenses primarily due to a decrease in programming and production costs, partially offset by increases in direct network costs and other expenses, as well as the impacts of foreign currency translation.
Costs and expenses for our segments and our corporate operations, business development initiatives and other businesses are discussed separately below under the heading "Segment Operating Results."
Consolidated Depreciation and Amortization Expense
% Change % Change
Year ended December 31 (in millions) 2022 2021 2020 2021 to 2022 2020 to 2021
Cable Communications $ 7,811 $ 7,811 $ 7,753 - % 0.7 %
NBCUniversal 2,562 2,466 2,307 3.9 6.9
Sky 3,169 3,379 3,034 (6.2) 11.4
Corporate and Other 279 147 6 89.8 NM
Comcast Consolidated $ 13,821 $ 13,804 $ 13,100 0.1 % 5.4 %
Percentage changes that are considered not meaningful are denoted with NM.
Corporate and Other depreciation and amortization increased primarily due to business development initiatives. NBCUniversal depreciation and amortization expense increased primarily due to the opening ofUniversal Beijing Resort inSeptember 2021 . Sky depreciation and amortization expense decreased primarily due to the impacts of foreign currency, partially offset by increased amortization of software.Cable Communications depreciation and amortization expense remained consistent with the prior year. Amortization expense from acquisition-related intangible assets totaled$2.2 billion ,$2.4 billion and$2.3 billion for 2022, 2021 and 2020, 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
Goodwill and long-lived asset impairments included charges related to our Sky segment totaling$8.6 billion for 2022 recognized in connection with our annual impairment assessment. The impairments primarily reflected an increased discount rate and reduced estimated future cash flows as a result of macroeconomic conditions in Sky's territories. See "Critical Accounting Judgments and Estimates" and Note 10 for further discussion.
Consolidated Interest Expense
Interest expense decreased in 2022 compared to 2021 primarily due to a decrease in average debt outstanding and$204 million of charges recorded in 2021 related to the early redemption of senior notes, partially offset by higher weighted-average interest rates.
Year ended December 31 (in millions) 2022 2021 2020 Equity in net income (losses) of investees, net$ (537)
(320) 339 1,014
Other income (loss), net (3) 211 259
Total investment and other income (loss), net $ (861) Comcast 2022 Annual Report on Form 10-K 40
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The change in equity in net income (losses) of investees, net in 2022 compared to 2021 was primarily due to our investment in Atairos. The income (losses) at Atairos were driven by fair value adjustments on its underlying investments with income (loss) of$(434) million and$1.8 billion in 2022 and 2021, respectively. The change in realized and unrealized gains (losses) on equity securities, net in 2022 compared to 2021 was primarily due to gains on nonmarketable securities in the prior year, while losses on marketable securities were consistent in both years. The change in other income (loss), net in 2022 compared to 2021 primarily resulted from losses on insurance contracts and equity method investment impairments.
Consolidated Income Tax (Expense) Benefit
Our effective income tax rate in 2022 and 2021 was 47.0% and 27.5%, respectively.
Income tax expense for 2022 was affected by changes in our net deferred tax liabilities as a result of the enactment of tax law changes, including$286 million of benefit in 2022 related to state taxes and$498 million of expense in 2021 in theUnited Kingdom . Our effective income tax rate for 2022 was also impacted by the goodwill impairment, which was primarily not deductible for tax purposes. See Note 5 for additional information on our effective income tax rate.
Consolidated Net Income (Loss) Attributable to Noncontrolling Interests
The changes in net income (loss) attributable to noncontrolling interests in 2022 compared to 2021 was primarily due to the operations of our Xumo streaming platform joint venture in the current year and increased losses atUniversal Beijing Resort due to operations in the current year compared to pre-opening costs in the prior year in advance of the park's opening inSeptember 2021 (see Note 8).
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Table of Contents 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
Revenue and Adjusted EBITDA Residential Customer Relationships (in billions) (in millions)
[[Image Removed: cmcsa-20221231_g9.jpg]]
% Change % Change
Year ended December 31 (in millions) 2022 2021 2020 2021 to 2022 2020 to 2021
Revenue
Residential:
Broadband $ 24,469 $ 22,979 $ 20,599 6.5 % 11.6 %
Video 21,314 22,079 21,937 (3.5) 0.6
Voice 3,010 3,417 3,532 (11.9) (3.3)
Wireless 3,071 2,380 1,574 29.0 51.2
Business services 9,700 8,933 8,191 8.6 9.1
Advertising 3,067 2,820 2,594 8.8 8.7
Other 1,687 1,719 1,624 (1.9) 5.9
Total revenue 66,318 64,328 60,051 3.1 7.1
Costs and expenses
Programming 13,884 14,285 13,498 (2.8) 5.8
Technical and product support 9,109 8,566 8,022 6.3 6.8
Customer service 2,292 2,347 2,432 (2.4) (3.5)Advertising, marketing and promotion 3,840 3,938 3,759
(2.5) 4.8
Franchise and other regulatory fees 1,637 1,806 1,625
(9.4) 11.1
Other 6,153 5,290 5,445 16.3 (2.8)
Total costs and expenses 36,915 36,231 34,781 1.9 4.2
Adjusted EBITDA $ 29,403 $ 28,097 $ 25,270 4.6 % 11.2 %
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Customer Metrics
Our customer relationships net additions were lower in 2022 as compared to 2021
primarily due to decreased growth in our broadband net additions and also
reflected accelerated net losses in our video and voice customers. In a reversal
from pandemic trends, our broadband net addition growth has slowed primarily
reflecting continued low household move levels and an increasingly competitive
environment.
Net Additions / (Losses)
(in thousands) 2022 2021 2020 2022 2021 2020
Customer relationships
Residential customer relationships 31,782 31,728 30,692 54 1,036 1,569
Business services customer relationships 2,510 2,489
2,426 21 63 30
Total customer relationships 34,293 34,218 33,119 75 1,099 1,599
Residential customer relationships mix
One product customers 15,652 14,330 12,408 1,322 1,922 2,187
Two product customers 8,188 8,407 8,734 (218) (328) (188)
Three or more product customers 7,942 8,992 9,550 (1,050) (558) (429)
Broadband
Residential customers 29,812 29,583 28,326 230 1,257 1,937
Business services customers 2,339 2,318 2,248 21 70 34
Total broadband customers 32,151 31,901 30,574 250 1,327 1,971
Video
Residential customers 15,554 17,495 18,993 (1,941) (1,498) (1,295)
Business services customers 589 681 852 (93) (171) (114)
Total video customers 16,142 18,176 19,846 (2,034) (1,669) (1,408)
Voice
Residential customers 7,912 9,062 9,645 (1,150) (583) (289)
Business services customers 1,369 1,391 1,357 (22) 34 15
Total voice customers 9,282 10,454 11,002 (1,172) (548) (275)
Wireless
Wireless lines 5,313 3,980 2,826 1,334 1,154 774
Customer metrics are presented based on actual amounts. Customer relationships
represent the number of residential and business customers that subscribe to at
least one of our services. One product, two product, and three or more product
customers represent residential customers that subscribe to one, two, or three
or more of our services, respectively. For multiple dwelling units ("MDUs"),
including buildings located on college campuses, whose residents have the
ability to receive additional services, such as additional programming choices
or our HD video or DVR services, we count and report customers based on the
number of potential billable relationships within each MDU. For MDUs whose
residents are not able to receive additional services, the MDU is counted as a
single customer. Residential broadband and video customer metrics include
certain customers that have prepaid for services. Business customers are
generally counted based on the number of locations receiving services within our
distribution system, with certain offerings such as Ethernet network services
counted as individual customer relationships. Wireless lines represent the
number of activated, eligible wireless devices on customers' accounts.
Individual customer relationships may have multiple wireless lines. Customer
metrics in 2020 and 2021 did not include customers in certain pandemic-related
programs through which portions of our customers temporarily received our
services for free. These programs ended in December 2021 , resulting in a
one-time benefit to net additions in 2022.
% Change 2022 % Change 2021
2022 2021 2020 to 2021 to 2020
Average monthly total revenue per customer
relationship $ 161.33 $ 159.22 $ 154.84 1.3 % 2.8 %
Average monthly Adjusted EBITDA per customer
relationship $ 71.53 $ 69.55 $ 65.16 2.9 % 6.7 %
Average monthly total revenue per customer relationship is impacted by rate
adjustments and changes in the types and levels of services received by our
residential and business services customers, as well as changes in advertising
revenue. While revenue from our residential broadband, video, voice and wireless
services is also impacted by changes in the allocation of revenue among services
sold in a bundle, the allocation does not impact average monthly total revenue
per customer relationship. Each of our services has a different contribution to
operating margin. We use average monthly Adjusted EBITDA per customer
relationship to evaluate the profitability of our customer base across our
service offerings. We believe both metrics are useful to understand the trends
in our business, and average monthly Adjusted EBITDA per customer relationship
is useful particularly as we continue to focus on growing our higher-margin
businesses.
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Cable Communications Segment - Revenue
We are a leading provider of broadband, video, voice, wireless, and other
services to residential customers in
Residential revenue includes amounts earned for providing our broadband, video, voice and wireless services, including equipment and installation services. Residential broadband revenue also includes revenue earned related to our customers' use of Flex and streaming services, and wireless revenue also includes device sales. Revenue from each of our residential services is impacted by changes in the allocation of revenue among services sold in a bundle. Franchise and regulatory fees billed to our customers are included with the relevant service, which primarily relate to video and voice services.
Broadband revenue increased in 2022 primarily due to an increase in average rates and an increase in the number of residential broadband customers.
Video revenue decreased in 2022 primarily due to a decline in the number of residential video customers, partially offset by an increase in average rates. We expect that the number of residential video customers will continue to decline, negatively impacting video revenue as a result of the competitive environment and shifting video consumption patterns.
Voice revenue decreased in 2022 primarily due to a decline in the number of residential voice customers. We expect that the number of residential voice customers and voice revenue will continue to decline.
Wireless revenue increased in 2022 primarily due to an increase in the number of customer lines and device sales.
Business services revenue from our business customers includes our service offerings for small business locations, which primarily include broadband, voice and video services, as well as our solutions for medium-sized customers and larger enterprises, and cellular backhaul services to mobile network operators.
Business services revenue increased in 2022 primarily due to increases in
average rates and customer relationships compared to the prior year and due to
the acquisition of
Advertising revenue consists of the sale of advertising on linear television and digital platforms to local, regional and national advertisers, including where we represent the advertising sales efforts of other multichannel video providers, and revenue from our advanced advertising business. Advertising revenue increased in 2022 primarily due to increases in political advertising and revenue from our advanced advertising business. These increases were partially offset by lower local and national advertising revenue, and by advertising revenue at our Xumo Play streaming service, which is a part of our Xumo streaming platform that has been reported in Corporate and Other sinceJune 2022 . Other revenue primarily relates to our security and automation services and also includes revenue related to residential customer late fees and related to other services, such as the licensing of our technology platforms to other multichannel video providers.
Cable Communications Segment - Costs and Expenses
Programming expenses, which represent our most significant operating expense, are the fees we incur to provide content to our customers. These expenses represent the programming license fees charged by content providers, including the fees related to the distribution of cable and broadcast network programming and fees charged for retransmission of the signals from local broadcast television stations.
Programming expenses decreased in 2022 primarily due to a decline in the number of video subscribers, partially offset by contractual rate increases.
We expect that our programming expenses will be impacted by rate increases to a greater extent in 2023 compared to 2022 due to the timing of contract renewals, which will be offset by expected declines in the number of residential video customers. Technical and product support expenses include costs to complete service call and installation activities; costs for network operations, product development, fulfillment and provisioning; the cost of wireless handsets, tablets and smart watches sold to customers; and monthly wholesale wireless access fees.
Technical and product support expenses increased in 2022 primarily due to
increased costs associated with our wireless phone service resulting from
increases in device sales and the number of customers receiving the service, and
the acquisition of
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Customer service expenses include the personnel and other costs associated with handling the sale of services to customers and customer service activity.
Customer service expenses decreased in 2022 primarily due to lower labor costs as a result of reduced call volumes.
Advertising, marketing and promotion expenses include the costs associated with attracting new customers and promoting our service offerings.
Advertising, marketing and promotion expenses decreased in 2022 primarily due to a decrease in spending.
Franchise and other regulatory fees represent the fees we are required to pay to federal, state and local authorities, including fees under the terms of our cable franchise agreements.
Franchise and other regulatory fees decreased in 2022 primarily due to a decrease in the revenue to which the fees apply and a decrease in the related rates of these fees.
Other expenses primarily include administrative personnel costs; fees paid to third-party channels for which Cable represents the advertising sales efforts; other business support costs, including building and office expenses, taxes and billing costs; and bad debt.
Other expenses increased in 2022 primarily due to lower levels of bad debt expense in the prior year and severance charges in the current year.
Cable Communications Segment - Operating Margin
Our operating margin is Adjusted EBITDA as a percentage of revenue. We believe this metric is useful particularly as we continue to focus on growing our higher-margin businesses and improving overall cost management. Our operating margin was 44.3%, 43.7% and 42.1% in 2022, 2021 and 2020, respectively.
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NBCUniversal Segments Overview
2022 NBCUniversal Segments Operating Results(a)
Revenue Adjusted EBITDA (in billions) (in billions)
[[Image Removed: cmcsa-20221231_g10.jpg]]
(a)Segment details in the charts exclude the results of NBCUniversal Headquarters and Other and Eliminations and therefore the amounts do not equal the total. Revenue and Adjusted EBITDA charts are not presented on the same scale.
% Change % Change
Year ended December 31 (in millions) 2022 2021 2020 2021 to 2022 2020 to 2021
Revenue
Media $ 23,406 $ 22,780 $ 18,936 2.7 % 20.3 %
Studios 11,622 9,449 8,134 23.0 16.2
Theme Parks 7,541 5,051 2,094 49.3 141.2
Headquarters and Other 75 87 53 (13.6) 63.8
Eliminations (3,442) (3,048) (2,006) (12.9) (51.9)
Total revenue $ 39,203 $ 34,319 $ 27,211 14.2 % 26.1 %
Adjusted EBITDA
Media $ 3,212 $ 4,569 $ 5,574 (29.7) % (18.0) %
Studios 942 884 1,041 6.6 (15.1)
Theme Parks 2,683 1,267 (477) 111.7 NM
Headquarters and Other (881) (840) (563) (4.8) (49.3)
Eliminations (2) (205) (220) 99.1 6.5
Total Adjusted EBITDA $ 5,955 $ 5,675 $ 5,355 4.9 % 6.0 %
Percentage changes that are considered not meaningful are denoted with NM.
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Media Segment Results of Operations
% Change % Change
Year ended December 31 (in millions) 2022 2021 2020 2021 to 2022 2020 to 2021
Revenue
Advertising $ 10,467 $ 10,291 $ 8,296 1.7 % 24.1 %
Distribution 10,881 10,449 8,795 4.1 18.8
Other 2,058 2,040 1,845 0.9 10.5
Total revenue 23,406 22,780 18,936 2.7 20.3
Costs and expenses
Programming and production 14,723 13,337 9,319 10.4 43.1
Other operating and administrative 3,951 3,611 3,209 9.4 12.5
Advertising, marketing and promotion 1,520 1,264 834
20.3 51.4
Total costs and expenses 20,194 18,212 13,362 10.9 36.3
Adjusted EBITDA $ 3,212 $ 4,569 $ 5,574 (29.7) % (18.0) %
Media Segment - Revenue
Advertising revenue consists of the sale of advertising on our television networks, Peacock and other digital properties.
% Change % Change
Year ended December 31 (in millions) 2022 2021 2020 2021 to 2022 2020 to 2021
Advertising $ 10,467 $ 10,291 $ 8,296 1.7 % 24.1 %
Advertising, excluding
- 9.1
Bowl and FIFA World Cup
Advertising revenue increased in 2022 compared to 2021 and included our broadcasts of theBeijing Olympics ,Super Bowl and FIFA World Cup in 2022, offset by our broadcast of theTokyo Olympics in 2021. Excluding$1.4 billion and$1.2 billion of incremental revenue associated with the broadcasts of these events in 2022 and 2021, respectively, advertising revenue remained consistent with the prior year primarily due to a decrease in revenue at our networks, offset by increased revenue at Peacock. The decreases at our networks were primarily due to continued audience ratings declines and the impact of additional sporting events in the prior year, partially offset by higher pricing in the current year and increased political advertising. Distribution revenue includes the fees received from the distribution of our cable and broadcast television network programming to traditional and virtual multichannel video providers and fromNBC -affiliated and Telemundo-affiliated local broadcast television stations. Distribution revenue also includes distribution revenue associated with our periodic broadcasts of theOlympic Games and subscription fees received from Peacock subscribers. % Change % Change Year ended December 31 (in millions) 2022 2021 2020 2021 to 2022 2020 to 2021 Distribution$ 10,881 $ 10,449 $ 8,795 4.1 % 18.8 % Distribution, excluding Olympics 10,554 9,928 8,795 6.3 12.9 Distribution revenue increased in 2022 compared to 2021 and included our broadcast of theBeijing Olympics in 2022, offset by our broadcast of theTokyo Olympics in 2021. Excluding$327 million and$522 million of incremental revenue associated with our broadcasts of theBeijing andTokyo Olympics in 2022 and 2021, respectively, distribution revenue increased primarily due to increased revenue at Peacock. Distribution revenue at our networks remained consistent with the prior year due to contractual rates increases, offset by a decline in the number of subscribers.
Other revenue primarily relates to the licensing of our owned programming and revenue generated by various digital properties.
* * *
We expect the number of subscribers and audience ratings at our networks will continue to decline as a result of the competitive environment and shifting video consumption patterns. Media segment total revenue included$2.1 billion and$778 million related to Peacock in 2022 and 2021, respectively.
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Media Segment - Costs and Expenses
Programming and production costs include the amortization of owned and licensed programming, including sports rights, direct production costs, production overhead, on-air talent costs and costs associated with the distribution of our programming to third-party networks and other distribution platforms. Programming and production costs increased in 2022 primarily due to higher programming costs at Peacock and costs associated with our broadcasts of theBeijing Olympics ,Super Bowl and FIFA World Cup in 2022, partially offset by costs associated with our broadcast of theTokyo Olympics in 2021.
Other operating and administrative expenses include salaries, employee benefits, rent and other overhead expenses.
Other operating and administrative expenses increased in 2022 primarily due to increased costs related to Peacock.
Advertising, marketing and promotion expenses consist primarily of the costs associated with promoting content on our networks, Peacock and other digital properties, as well as costs associated with promoting our platforms and digital properties.
Advertising, marketing and promotion expenses increased in 2022 primarily due to higher marketing costs related to Peacock.
* * *
Media segment total costs and expenses included$4.6 billion and$2.5 billion related to Peacock in 2022 and 2021, respectively. We expect to continue to incur significant costs related to additional content and marketing as we invest in the platform and attract new customers.
Studios Segment Results of Operations
% Change % Change
Year ended December 31 (in millions) 2022 2021 2020 2021 to 2022 2020 to 2021
Revenue
Content licensing $ 8,713 $ 7,565 $ 6,557 15.2 % 15.4 %
Theatrical 1,607 691 418 132.5 65.4
Home entertainment and other 1,302 1,193 1,159 9.2 2.9
Total revenue 11,622 9,449 8,134 23.0 16.2
Costs and expenses
Programming and production 8,186 6,820 5,413 20.0 26.0
Other operating and administrative 797 667 813 19.4 (18.0)
Advertising, marketing and promotion 1,697 1,078 867 57.4 24.3
Total costs and expenses 10,680 8,565 7,093 24.7 20.7
Adjusted EBITDA $ 942 $ 884 $ 1,041 6.6 % (15.1) %
Studios Segment - Revenue
Content licensing revenue relates to the licensing of our owned film and
television content in the United States and internationally to cable, broadcast
and premium networks and DTC streaming service providers, as well as through
video on demand and pay-per-view services provided by multichannel video
providers and OTT service providers.
Content licensing revenue increased in 2022 primarily due to the timing of when
content was made available by our television and film studios under licensing
agreements, including additional sales of content as production levels returned
to normal, partially offset by the impact of a new licensing agreement for
content that became exclusively available for streaming on Peacock in 2021.
Theatrical revenue relates to the worldwide distribution of our produced and acquired films for exhibition in movie theaters.
Theatrical revenue increased in 2022 primarily due to the strong performances of releases in our 2022 slate, includingJurassic World : Dominion and Minions: The Rise of Gru. Home entertainment and other revenue consists of the sale of content on DVDs/Blu-ray discs and through digital distribution services, as well as the production and licensing of live stage plays and the distribution of content produced by third parties. The overall DVD/Blu-ray discs market continues to experience declines due to the maturation of the DVD/Blu-ray disc format from increasing shifts in consumer behavior toward digital distribution services and subscription rental services, both of which generate less revenue per transaction than DVD/Blu-ray disc sales, as well as due to piracy.
Home entertainment and other revenue increased in 2022 primarily due to increased revenue related to our live stage plays, which were adversely impacted by theater and entertainment venue closures in the prior year.
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Studios Segment - Costs and Expenses
Programming and production costs include the amortization of capitalized film and television production and acquisition costs, residuals and participations payments, and distribution expenses. The costs associated with producing film and television content have generally increased in recent years and may continue to increase in the future.
Programming and production costs increased in 2022 due to higher costs associated with content licensing sales and theatrical releases in the current year.
Other operating and administrative expenses include salaries, employee benefits, rent and other overhead expenses.
Other operating and administrative expenses increased in 2022 primarily due to higher costs associated with live stage plays.
Advertising, marketing and promotion expenses consist primarily of expenses associated with advertising for our theatrical releases and the marketing of DVDs/Blu-ray discs. The costs associated with marketing films have generally increased in recent years and may continue to increase in the future. Advertising, marketing and promotion expenses increased in 2022 primarily due to higher spending on current period and upcoming theatrical film releases in the current year.
Theme Parks Segment Results of Operations
% Change % Change
Year ended December 31 (in millions) 2022 2021 2020 2021 to 2022 2020 to 2021
Revenue $ 7,541 $ 5,051 $ 2,094 49.3 % 141.2 %
Costs and expenses 4,858 3,783 2,571 28.4 47.1
Adjusted EBITDA $ 2,683 $ 1,267 $ (477) 111.7 % NM
Percentage changes that are considered not meaningful are denoted with NM.
Theme parks revenue primarily relates to guest spending at our theme parks, including ticket sales and in-park spending and our consumer products business.
Theme park segment revenue increased in 2022 primarily due to improved operating conditions compared to 2021, when our theme parks inOrlando ,Hollywood andJapan were impacted by COVID-19 restrictions, as well as the operations ofUniversal Beijing Resort , which opened inSeptember 2021 . Results at our international theme parks in the current year have been negatively impacted by fluctuations in foreign currency exchange rates and by temporary restrictions and closures that were reinstituted in certain periods due to COVID-19.
Theme parks costs and expenses consist primarily of theme park operations, including repairs and maintenance and related administrative expenses; food, beverage and merchandise costs; labor costs; and sales and marketing costs.
Theme park segment costs and expenses increased in 2022 primarily as a result of decreased operating costs in the prior year due to COVID-19 restrictions at our theme parks and due to operating costs associated withUniversal Beijing Resort in the current year, which were higher than pre-opening costs in the prior year.
NBCUniversal Headquarters, Other and Eliminations
Headquarters and Other Results of Operations
% Change % Change
Year ended December 31 (in millions) 2022 2021 2020 2021 to 2022 2020 to 2021
Revenue $ 75 $ 87 $ 53 (13.6) % 63.8 %
Costs and expenses 956 927 616 3.1 50.5
Adjusted EBITDA $ (881) $ (840) $ (563) (4.8) % (49.3) %
Headquarters and other expenses include overhead, personnel costs and costs associated with corporate initiatives. Expenses increased in 2022 primarily due to severance charges in the current year, partially offset by a decrease in employee-related costs compared to the prior year.
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Eliminations
% Change % Change
Year ended December 31 (in millions) 2022 2021 2020 2021 to 2022 2020 to 2021
Revenue $ (3,442) $ (3,048) $ (2,006) 12.9 % 51.9 %
Costs and expenses (3,440) (2,843) (1,786) 21.0 59.0
Adjusted EBITDA $ (2) $ (205) $ (220) (99.1) % (6.5) %
Amounts represent eliminations of transactions between our NBCUniversal
segments, which are affected by the timing of recognition of content licenses
between our Studios and Media segments. Prior year amounts include the impact of
a new licensing agreement for content that became exclusively available for
streaming on Peacock during the first quarter of 2021. Results of operations for
NBCUniversal may be impacted as we continue to use content on our platforms,
including Peacock, rather than licensing the content to third parties.
For the years ended 2022, 2021 and 2020, approximately 41%, 42% and 34%, respectively, of Studios segment content licensing revenue resulted from transactions with other segments, primarily with the Media segment. Eliminations will increase or decrease to the extent that additional content is made available to our other segments. Refer to Note 2 for further discussion of transactions between our segments.
Sky Segment Results of Operations
% Change % Change
2022 2021 2020 2021 to 2022 2020 to 2021
Constant Constant
Currency Currency
Year ended December 31 (in millions) Actual Actual Actual Actual Change(a) Actual Change(a)
Revenue
Direct-to-consumer $ 14,621 $ 16,455 $ 15,223 (11.1) % (0.8) % 8.1 % 2.0 %
Content 1,138 1,341 1,373 (15.2) (5.5) (2.3) (7.4)
Advertising 2,187 2,489 1,998 (12.1) (1.9) 24.6 18.4
Total revenue 17,946 20,285 18,594 (11.5) (1.2) 9.1 3.1
Costs and expenses
Programming and production 6,830 8,949 8,649 (23.7) (15.0) 3.5 (1.3)
Direct network costs 2,652 2,612 2,086 1.5 13.1 25.2 17.1
Other 5,939 6,364 5,905 (6.7) 4.2 7.8 2.0
Total costs and expenses 15,420 17,925 16,640 (14.0) (4.1) 7.7 2.2
Adjusted EBITDA $ 2,526 $ 2,359 $ 1,954 7.0 % 20.3 % 20.8 % 10.2 %
(a)Constant currency is a non-GAAP financial measure. Refer to the "Non-GAAP
Financial Measures" section on page 52 for additional information, including our
definition and our use of constant currency, and for a reconciliation of Sky's
constant currency growth rates.
Customer Metrics
Net Additions / (Losses)
(in thousands) 2022 2021 2020 2022 2021 2020
Total customer relationships 23,115 23,027 23,224 88 (198) (56)
Customer metrics are presented based on actual amounts. Customer relationships
represent the number of residential customers that subscribe to at least one of
Sky's four primary services of video, broadband, voice and wireless phone
service. Sky reports business customers, including hotels, bars, workplaces and
restaurants, generally based on the number of locations receiving our services.
2022 2021 2020 % Change 2021 to 2022 % Change 2020 to 2021
Constant Constant
Currency Currency
Actual Actual Actual
Actual Growth(a) Actual Growth(a)
Average monthly direct-to-consumer
revenue per customer relationship
(10.9) % (0.6) % 8.7 % 2.6 %
(a)Constant currency is a non-GAAP financial measure. Refer to the "Non-GAAP
Financial Measures" section on page 52 for additional information, including our
definition and our use of constant currency, and for a reconciliation of Sky's
constant currency growth rates.
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Average monthly direct-to-consumer revenue per customer relationship is impacted by rate adjustments and changes in the types and levels of services received by Sky's customers. Each of Sky's services has a different contribution to Adjusted EBITDA. We believe average monthly direct-to-consumer revenue per customer relationship is useful in understanding the trends in our business across all of our direct-to-consumer service offerings.
Sky Segment - Revenue
Direct-to-consumer revenue primarily relates to video services provided to both residential and business customers, as well as broadband, voice and wireless services. Video service revenue includes both DTH video services and our NOW streaming service. Revenue from our wireless customers also includes device sales. Direct-to-consumer revenue decreased in 2022 compared to 2021. Excluding the impact of foreign currency, direct-to-consumer revenue decreased primarily due to a lower number of customer relationships during the year and a decrease in average revenue per customer. The lower number of customer relationships was driven by a decrease inItaly , partially offset by increases in theUnited Kingdom andGermany . The decrease in average revenue per customer relationship reflects decreases in average rates inItaly andGermany , partially offset by an increase in average rates in theUnited Kingdom . The decline in customer relationships and average revenue per customer relationship inItaly included the effects of the reduced broadcast rights for Serie A, which we had held through the end of the 2020-21 season. Beginning with the 2021-22 season in the third quarter of 2021 and through the 2023-24 season, we have nonexclusive broadcast rights to fewer matches. Sky results have been affected by worsening macroeconomic conditions in theUnited Kingdom and continentalEurope .
Content revenue relates to the distribution of our owned television channels on third-party platforms and the licensing of owned and licensed content.
Content revenue decreased in 2022 compared to 2021. Excluding the impact of
foreign currency, content revenue decreased primarily due to lower sports
programming licensing revenue driven by changes in licensing agreements in
Advertising revenue consists of the sale of advertising across our platforms, including our owned television channels, and where we represent the sales efforts of third-party channels, as well as revenue from various technology, tools and solutions relating to our advertising business. Advertising revenue decreased in 2022 compared to 2021. Excluding the impact of foreign currency, advertising revenue decreased primarily due to decreased advertising revenue associated with Serie A, partially offset by an overall market improvement in theUnited Kingdom in the first half of the year compared to the prior year.
Sky Segment - Costs and Expenses
Programming and production costs primarily relate to content broadcast on our channels. These costs include the amortization of owned and licensed programming, including sports rights, direct production costs, production overhead and on-air talent costs. These costs also include the fees associated with programming distribution agreements for channels owned by third parties. Programming and production costs decreased in 2022 compared to 2021. Excluding the impact of foreign currency, these costs decreased primarily reflecting lower costs associated with Serie A inItaly as a result of the reduced broadcast rights and the timing of recognition of costs related to sporting events. The timing impacts included the delayed start of 2020-21 European football seasons due to COVID-19 and the shifting of certain football matches and the related programming expense to the first half of 2023 due to the 2022 FIFA World Cup, which occurred in the fourth quarter of 2022. Programming and production costs were also impacted by lower costs associated with other sports contracts inGermany in the current year. Direct network costs primarily include costs directly related to the supply of broadband and voice services, including wireless services for wireless handsets and tablets, to our customers. This includes call costs, monthly wholesale access fees and other variable costs associated with our network. In addition, it includes the cost of wireless devices sold to customers. Direct network costs increased in 2022 compared to 2021. Excluding the impact of foreign currency, these expenses increased primarily due to an increase in costs associated with Sky's broadband and wireless phone services as a result of increases in the number of customers receiving these services and wireless device sales.
Other expenses include costs related to marketing, fees paid to third-party channels for which Sky represents the advertising sales efforts, subscriber management, supply chain, transmission, technology, fixed networks and general administrative costs.
Other expenses decreased in 2022 compared to 2021. Excluding the impact of foreign currency, these expenses increased primarily due to higher administrative costs, including severance charges, partially offset by lower fees paid to third-party channels relating to advertising sales.
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Corporate, Other and Eliminations
Corporate and Other Results of Operations
% Change % Change
Year ended December 31 (in millions) 2022 2021 2020 2021 to 2022 2020 to 2021
Revenue $ 863 $ 461 $ 248 87.1 % 86.1 %
Costs and expenses 2,223 1,819 2,033 22.3 (10.5)
Adjusted EBITDA $ (1,361) $ (1,358) $ (1,785) (0.2) % 23.9 %
Corporate and Other primarily includes overhead and personnel costs, the results
of other business initiatives and Comcast Spectacor, which owns the Philadelphia
Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania . Other
business initiatives primarily include results associated with Sky Glass smart
televisions and the related hardware sales and beginning in June 2022 , the
operations of Xumo, our consolidated streaming platform joint venture.
Corporate and Other revenue increased in 2022 primarily due to sales of Sky
Glass smart televisions, increases at Comcast Spectacor compared to the prior
year which included the impacts of COVID-19 and revenue at Xumo related to the
Xumo Play streaming service.
Corporate and Other expenses increased in 2022 primarily due to costs related to
Sky Glass and Xumo, partially offset by lower administrative costs. We expect to
incur increased costs in 2023 related to Xumo.
Eliminations
% Change % Change
Year ended December 31 (in millions) 2022 2021 2020 2021 to 2022 2020 to 2021
Revenue $ (2,903) $ (3,008) $ (2,540) (3.5) % 18.5 %
Costs and expenses (2,838) (2,942) (2,572) (3.5) 14.4
Adjusted EBITDA $ (64) $ (65) $ 32 (1.7) % NM
Percentage changes that are considered not meaningful are denoted with NM.
Amounts represent eliminations of transactions betweenCable Communications , NBCUniversal, Sky and other businesses. Eliminations of transactions between NBCUniversal are presented separately. Amounts reflect increases in eliminations associated with theBeijing andTokyo Olympics in 2022 and 2021, respectively. Refer to Note 2 for a description of transactions between our segments. Non-GAAP Financial Measures
Consolidated Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure and is the primary basis used to measure the operational strength and performance of our businesses as well as to assist in the evaluation of underlying trends in our businesses. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. It is also unaffected by our capital and tax structures, and by our investment activities, including the results of entities that we do not consolidate, as our management excludes these results when evaluating our operating performance. Our management and Board of Directors use this financial measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. Additionally, we believe that Adjusted EBITDA is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure of Adjusted EBITDA may not be directly comparable to similar measures used by other companies. We define Adjusted EBITDA as net income attributable toComcast Corporation before net income (loss) attributable to noncontrolling interests, 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.
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We reconcile consolidated Adjusted EBITDA to net income attributable toComcast Corporation . This measure should not be considered a substitute for operating income (loss), net income (loss), net income (loss) attributable toComcast Corporation , or net cash provided by operating activities that we have reported in accordance with GAAP.
Reconciliation from Net Income Attributable to
2022 2021 2020
Net income attributable to Comcast Corporation $ 5,370 $ 14,159 $ 10,534
Net income (loss) attributable to noncontrolling interests (445) (325) 167
Income tax expense 4,359 5,259 3,364
Investment and other (income) loss, net 861 (2,557) (1,160)
Interest expense 3,896 4,281 4,588
Depreciation 8,724 8,628 8,320
Amortization 5,097 5,176 4,780
Goodwill and long-lived asset impairments 8,583 - -
Adjustments(a) 13 87 233
Adjusted EBITDA $ 36,459 $ 34,708 $ 30,826
(a)Amounts represent the impact of certain events, gains, losses or other
charges that are excluded from Adjusted EBITDA, including costs related to our
investment portfolio, and Sky transaction-related costs in 2021 and 2020. 2020
also includes $177 million related to a legal settlement.
Constant Currency
Constant currency and constant currency growth rates are non-GAAP financial measures that present our results of operations excluding the estimated effects of foreign currency exchange rate fluctuations. Certain of our businesses, including Sky, have operations outsidethe United States that are conducted in local currencies. As a result, the comparability of the financial results reported inU.S. dollars is affected by changes in foreign currency exchange rates. In our Sky segment, we use constant currency and constant currency growth rates to evaluate the underlying performance of the business, and we believe it is helpful for investors to present operating results on a comparable basis year over year to evaluate its underlying performance. Constant currency and constant currency growth rates are calculated by comparing the prior year results adjusted to reflect the average exchange rates from the current year rather than the actual exchange rates that were in effect during the respective prior year.
Reconciliation of Sky Constant Currency Growth Rates
% Change 2021 to % Change 2020 to
2022 2021 2022 2021 2020 2021
Year ended December 31 (in millions, except Constant Constant Constant Constant
per customer data) Actual Currency Currency Change Actual Currency Currency Change
Revenue
Direct-to-consumer $ 14,621 $ 14,739 (0.8) % $ 16,455 $ 16,125 2.0 %
Content 1,138 1,204 (5.5) 1,341 1,448 (7.4)
Advertising 2,187 2,229 (1.9) 2,489 2,101 18.4
Total revenue 17,946 18,172 (1.2) 20,285 19,675 3.1
Costs and expenses
Programming and production 6,830 8,031 (15.0) 8,949 9,064 (1.3)
Direct network costs 2,652 2,344 13.1 2,612 2,230 17.1
Other 5,939 5,698 4.2 6,364 6,239 2.0
Total costs and expenses 15,420 16,074 (4.1) 17,925 17,533 2.2
Adjusted EBITDA $ 2,526 $ 2,099 20.3 % $ 2,359 $ 2,142 10.2 %
Average monthly direct-to-consumer revenue
per customer relationship $ 52.81 $ 53.11 (0.6) % $ 59.29 $ 57.79 2.6 %
Other Adjustments
From time to time, we present adjusted information, such as revenue, to exclude
the impact of certain events, gains, losses or other charges. This adjusted
information is a non-GAAP financial measure. We believe, among other things,
that the adjusted information may help investors evaluate our ongoing operations
and can assist in making meaningful period-over-period comparisons.
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Liquidity and Capital Resources
Year ended
December 31 (in billions) 2022 2021 Cash and cash equivalents$ 4.7 $ 8.7 Short-term and long-term debt$ 94.8 $ 94.8 Our businesses generate significant cash flows from operating activities. We believe that we will be able to continue to meet our current and long-term liquidity and capital requirements, including fixed charges, through our cash flows from operating activities; existing cash, cash equivalents and investments; available borrowings under our existing credit facility; and our ability to obtain future external financing. Refer to the "Contractual Obligations" discussion below for additional information regarding our cash requirements. We anticipate that we will continue to use a substantial portion of our cash flows from operating activities in repaying our debt obligations, funding our capital expenditures and cash paid for intangible assets, investing in business opportunities, and returning capital to shareholders. We maintain significant availability under our revolving credit facility and our commercial paper program to meet our short-term liquidity requirements. Our commercial paper program generally provides a lower-cost source of borrowing to fund our short-term working capital requirements. As ofDecember 31, 2022 , amounts available under our revolving credit facility, net of amounts outstanding under our commercial paper program and outstanding letters of credit and bank guarantees, totaled$10.4 billion . We entered into a new revolving credit facility inMarch 2021 (see Note 6). We are subject to customary covenants and restrictions set forth in agreements related to debt issued at Comcast and certain of our subsidiaries, including the indentures governing our public debt securities and the credit agreement governing the Comcast revolving credit facility. Our credit facility contains a financial covenant pertaining to leverage, which is the ratio of debt to EBITDA, as defined in the credit facility. Compliance with this financial covenant is tested on a quarterly basis under the terms of the credit facility. As ofDecember 31, 2022 , we met this financial covenant by a significant margin, and we expect to remain in compliance with this financial covenant and other covenants related to our debt. The covenants and restrictions in our revolving credit facility do not apply to certain entities, including Sky and our international theme parks.
Operating Activities
Components of Net Cash Provided by Operating Activities
Year ended
2022 2021 2020
Operating income$ 14,041 $ 20,817 $
17,493
Depreciation and amortization 13,821 13,804
13,100
1,336 1,315 1,193
Changes in operating assets and liabilities (3,006) (1,499) (178) Payments of interest
(3,413) (3,908) (3,878)
Payments of income taxes (5,265) (2,628)
(3,183)
Proceeds from investments and other 316 1,246
190
Net cash provided by operating activities
The variance in changes in operating assets and liabilities in 2022 compared to 2021 was primarily related to the timing of amortization and related payments for our film and television costs, including the return to normal production levels and the timing of sporting events, as well as decreases in deferred revenue, partially offset by accruals related to severance in 2022. The decrease in payments of interest in 2022 was primarily due to the debt exchange inAugust 2021 , including the impact of timing of interest payments, reduced debt balances following repayments in the prior year and cash proceeds from the early settlement of interest rate swaps related to the collateralized obligation. The increase in income tax payments in 2022 was primarily due to the tax benefit from our senior notes exchange in 2021, which reduced tax payments by$1.3 billion in the prior year, higher taxable income and higher payments relating to the preceding tax year.
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The decrease in proceeds from investments and other compared to 2021 was primarily due to decreased cash distributions received from equity method investments (see Note 8).
Investing Activities
Our most significant recurring investing activity has been capital expenditures, which are discussed further below. The increase in cash used in investing activities in 2022 compared to 2021 was primarily due to purchases of short-term investments throughout the current year, increased capital expenditures and increased cash paid for intangible assets related to software development. These increases were partially offset by the acquisition ofMasergy in 2021, increased proceeds from the sale of investments, including maturities of short-term investments in the current year, and decreased cash paid related to the construction ofUniversal Beijing Resort in the current year.
In 2022, we formed the SkyShowtime joint venture with Paramount Global. The partners have committed to a multiyear funding plan, which began in 2022.
Capital Expenditures
Capital expenditures increased in 2022 primarily due to increased spending in ourTheme Parks segment primarily related to Epic Universe and increases in ourCable Communications segment, partially offset by decreases in spending in our Sky segment. The costs associated with the construction ofUniversal Beijing Resort are presented separately in our consolidated statement of cash flows. See Note 8.
Our most significant capital expenditures are in our
Year ended December 31 (in millions) 2022 2021 2020 Customer premise equipment$ 2,293 $ 2,203 $ 2,333 Scalable infrastructure 2,851 2,658 2,289 Line extensions 1,824 1,565 1,394 Support capital 600 503 589 Total$ 7,568 $ 6,930 $ 6,605 We expect our capital expenditures for 2023 will be focused on increased investment in scalable infrastructure as we increase capacity and execute our plans to upgrade our network to deliver multigigabit speeds, in line extensions for the expansion of both business services and residential passings in ourCable Communications segment, and in the continued deployment of wireless gateways. In addition, we expect to continue investment in existing and new attractions at our Universal theme parks, including the development of Epic Universe. Capital expenditures for subsequent years will depend on numerous factors, including competition, changes in technology, regulatory changes, the timing and rate of deployment of new services, the capacity required for existing services, the timing of new attractions at our theme parks and potential acquisitions.
Financing Activities
Net cash used in financing activities decreased in 2022 compared to 2021 primarily due to higher repurchases and repayments of debt in the prior year, the change in other financing activities and proceeds from short-term borrowings, net in the current year. These decreases were partially offset by increases in repurchases of common stock under our share repurchase program and employee plans and dividends paid in the current year. Other financing activities included payments related to the redemption of NBCUniversal Enterprise redeemable subsidiary preferred stock in the prior year, the settlement of derivative contracts and initial contributions related to our Xumo streaming platform joint venture received in the current year under a multiyear funding plan. In 2022, we issued$2.5 billion aggregate principal amount of fixed-rate senior notes maturing between 2025 and 2032, had net borrowings of$665 million under our commercial paper program, and had borrowings of$252 million under theUniversal Beijing Resort term loan. In 2022, we made total debt repayments of$2.3 billion , primarily related to senior notes maturing in 2022. We have made, and may from time to time in the future make, optional repayments on our debt obligations, which may include repurchases or exchanges of our outstanding public notes and debentures, depending on various factors, such as market conditions. Any such repurchases may be effected through privately negotiated transactions, market transactions, tender offers, redemptions or otherwise. See Notes 6 and 8 for additional information on our financing activities.
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Share Repurchases and Dividends
In the second quarter of 2021, we restarted our share repurchase program, which had been paused since the beginning of 2019. InSeptember 2022 , our Board of Directors approved a new share repurchase program authorization of$20 billion , effectiveSeptember 13, 2022 . During 2022, we repurchased a total of 332.0 million shares of our Class A common stock for$13.0 billion . As ofDecember 31, 2022 , we had$16.0 billion remaining under the new share repurchase program authorization. Under the new authorization, which does not have an expiration date, we expect to repurchase additional shares of our Class A common stock in the open market or in private transactions, subject to market and other conditions. Our Board of Directors declared quarterly dividends totaling$4.8 billion in 2022. We paid dividends of$4.7 billion in 2022. InJanuary 2023 , our Board of Directors approved an 7.4% increase in our dividend to$1.16 per share on an annualized basis. We expect to continue to pay quarterly dividends, although each dividend is subject to approval by our Board of Directors. The chart below summarizes our share repurchases under our publicly announced share repurchase program authorization and dividends paid in 2022, 2021 and 2020. In addition, we paid$321 million and$674 million in 2022 and 2021, respectively, related to employee taxes associated with the administration of our share-based compensation plans.
Share Repurchases Under Share Repurchase Program Authorization and Dividends Paid (in billions)
[[Image Removed: cmcsa-20221231_g11.jpg]]
Contractual Obligations
The following table summarizes our most significant contractual obligations as
of
Within the Beyond the
As of December 31, 2022 (in billions) Total next 12 months next 12 months
Debt obligations(a) $ 101.0 $ 1.7 $ 99.2
Programming and production obligations 72.8 16.4 56.4
(a) Amounts represent the face value of debt and exclude interest payments and a collateralized obligation (see Note 8).
Our largest contractual obligations relate to our outstanding debt. As ofDecember 31, 2022 , our debt has a weighted-average time to maturity of approximately 17 years and, including the effects of our derivative financial instruments, our debt had a weighted-average interest rate based on the stated coupons of 3.59% and 93% of our debt obligations were fixed-rate debt. We typically fund and expect to continue to be able to fund debt maturities and interest payments with cash flows generated in our operations; existing cash, cash equivalents and investments; or proceeds from additional external financing. See Note 6 and Item 7A for additional information on our debt.
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We also have significant contractual obligations associated with our programming and production expenses. NBCUniversal and Sky have multiyear agreements for broadcast rights of sporting events, such as for the NFL, theOlympics and European football leagues, which represent the substantial majority of our programming and production obligations.Cable Communications' programming expenses related to the distribution of third-party programmed channels are generally acquired under multiyear distribution agreements, with fees typically based on the number of customers that receive the programming and the extent of distribution. As a result, the amounts included in the table above under fixed or minimum guaranteed commitments for these distribution agreements are not material and we expect the total fees to be paid under these arrangements to be significantly higher than the amounts included above. We have funded and expect to continue to be able to fund our programming and production obligations with the cash generated from our operations. As ofDecember 31, 2022 , approximately 36% of cash payments related to our programming and production obligations are due after five years, of which the vast majority related to multiyear sports rights agreements. See Note 4 for additional information on programming and production costs. Our other contractual obligations relate primarily to operating leases (see Note 15) and other arrangements recorded in our consolidated balance sheet and/or disclosed in the notes to our financial statements, including benefit plan obligations (see Note 11), liabilities for uncertain tax positions (see Note 5), our remaining unfunded capital commitment to Atairos (see Note 8) and a contractual obligation related to an interest held by a third party in the revenue of certain theme parks (see Note 15).
Guarantee Structure
Our debt is primarily issued at Comcast, although we also have debt at certain of our subsidiaries as a result of acquisitions and other issuances. A substantial amount of this debt is subject to guarantees by Comcast and by certain subsidiaries that we have put in place to simplify our capital structure. We believe this guarantee structure provides liquidity benefits to debt investors and helps to simplify credit analysis with respect to relative value considerations of guaranteed subsidiary debt. Debt and Guarantee Structure December 31 (in billions) 2022 2021 Debt Subject to Cross-Guarantees Comcast$ 88.4 $ 85.9 Comcast Cable(a) 0.9 2.1 NBCUniversal(a) 1.6 1.6 90.9 89.6 Debt Subject to One-Way Guarantees Sky 5.2 6.3 Other(a) 0.1 0.1 5.3 6.5 Debt Not Guaranteed Universal Beijing Resort(b) 3.5 3.6 Other 1.3 1.2 4.8 4.7
Debt issuance costs, premiums, discounts, fair value adjustments for acquisition accounting and hedged positions, net
(6.2) (6.0) Total debt$ 94.8 $ 94.8 (a)NBCUniversal,Comcast Cable andComcast Holdings (included within other debt subject to one-way guarantees) are each consolidated subsidiaries subject to the periodic reporting requirements of theSEC . The guarantee structures and related disclosures in this section, together with Exhibit 22, satisfy these reporting obligations.
(b)
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Cross-Guarantees
Comcast, NBCUniversal andComcast Cable (the "Guarantors") fully and unconditionally, jointly and severally, guarantee each other's debt securities. NBCUniversal andComcast Cable also guarantee other borrowings of Comcast, including its revolving credit facility. These guarantees rank equally with all other general unsecured and unsubordinated obligations of the respective Guarantors. However, the obligations of the Guarantors under the guarantees are structurally subordinated to the indebtedness and other liabilities of their respective non-guarantor subsidiaries. The obligations of each Guarantor are limited to the maximum amount that would not render such Guarantor's obligations subject to avoidance under applicable fraudulent conveyance provisions ofU.S. and non-U.S. law. Each Guarantor's obligations will remain in effect until all amounts payable with respect to the guaranteed securities have been paid in full. However, a guarantee by NBCUniversal orComcast Cable of Comcast's debt securities, or by NBCUniversal ofComcast Cable's debt securities, will terminate upon a disposition of such Guarantor entity or all or substantially all of its assets. The Guarantors are each holding companies that principally hold investments in, borrow from and lend to non-guarantor subsidiary operating companies; issue and service third-party debt obligations; repurchase shares and pay dividends; and engage in certain corporate and headquarters activities. The Guarantors are generally dependent on non-guarantor subsidiary operating companies to fund these activities. As ofDecember 31, 2022 and 2021, the combined Guarantors have noncurrent notes payable to non-guarantor subsidiaries of$128 billion and$126 billion , respectively, and noncurrent notes receivable from non-guarantor subsidiaries of$30 billion . This financial information is that of the Guarantors presented on a combined basis with intercompany balances between the Guarantors eliminated. The combined financial information excludes financial information of non-guarantor subsidiaries. The underlying net assets of the non-guarantor subsidiaries are significantly in excess of the Guarantor obligations. Excluding investments in non-guarantor subsidiaries, external debt and the noncurrent notes payable and receivable with non-guarantor subsidiaries, the Guarantors do not have material assets, liabilities or results of operations.
One-Way Guarantees
Comcast provides full and unconditional guarantees of certain debt issued by Sky, including all of its senior notes, and other consolidated subsidiaries not subject to the periodic reporting requirements of theSEC . Comcast also provides a full and unconditional guarantee of$138 million principal amount of subordinated debt issued byComcast Holdings . Comcast's obligations under this guarantee are subordinated and subject, in right of payment, to the prior payment in full of all of Comcast's senior indebtedness, including debt guaranteed by Comcast on a senior basis, and are structurally subordinated to the indebtedness and other liabilities of its non-guarantor subsidiaries (for purposes of thisComcast Holdings discussion,Comcast Cable and NBCUniversal are included within the non-guarantor subsidiary group). Comcast's obligations as guarantor will remain in effect until all amounts payable with respect to the guaranteed debt have been paid in full. However, the guarantee will terminate upon a disposition ofComcast Holdings or all or substantially all of its assets.Comcast Holdings is a consolidated subsidiary holding company that directly or indirectly holds 100% and approximately 37% of our equity interests inComcast Cable and NBCUniversal, respectively. As ofDecember 31, 2022 and 2021,Comcast andComcast Holdings , the combined issuer and guarantor of the guaranteed subordinated debt, have noncurrent senior notes payable to non-guarantor subsidiaries of$97 billion and$96 billion , respectively, and noncurrent notes receivable from non-guarantor subsidiaries of$28 billion and$29 billion , respectively. This financial information is that ofComcast andComcast Holdings presented on a combined basis with intercompany balances betweenComcast andComcast Holdings eliminated. The combined financial information excludes financial information of non-guarantor subsidiaries ofComcast andComcast Holdings . The underlying net assets of the non-guarantor subsidiaries ofComcast andComcast Holdings are significantly in excess of the obligations ofComcast andComcast Holdings . Excluding investments in non-guarantor subsidiaries, external debt, and the noncurrent notes payable and receivable with non-guarantor subsidiaries,Comcast andComcast Holdings do not have material assets, liabilities or results of operations.
Critical Accounting Judgments and Estimates
The preparation of our consolidated financial statements requires us to make estimates that affect the reported amounts of assets, liabilities, revenue and expenses, and the related disclosure of contingent assets and contingent liabilities. We base our judgments on our historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making estimates about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
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We believe our judgments and related estimates associated with the valuation and impairment testing of goodwill and cable franchise rights and the accounting for film and television costs are critical in the preparation of our consolidated financial statements. Management has discussed the development and selection of these critical accounting judgments and estimates with the Audit Committee of our Board of Directors, and the Audit Committee has reviewed the related disclosures below. See also Notes 4 and 10.
Valuation and Impairment Testing of
We assess the recoverability of our goodwill and indefinite-lived intangible assets, including cable franchise rights, annually as ofJuly 1 , or more frequently whenever events or substantive changes in circumstances indicate that the assets might be impaired. The assessment of recoverability may first consider qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit or an indefinite-lived intangible asset is less than its carrying amount. A quantitative assessment is performed if the qualitative assessment results in a more-likely-than-not determination or if a qualitative assessment is not performed. In connection with our impairment assessment process, in order to support our qualitative assessments, we typically perform quantitative assessments of our cable franchise rights and reporting units approximately once every four years.
Goodwill results from business combinations and represents the excess amount of the consideration paid over the identifiable assets and liabilities recorded in the acquisition. We test goodwill for impairment at the reporting unit level and have concluded that our reporting units are generally the same as our reportable segments. We evaluate the determination of our reporting units periodically or whenever events or substantive changes in circumstances occur. When performing a quantitative assessment, we estimate the fair values of our reporting units primarily based on a discounted cash flow analysis that involves significant judgment, including market participant estimates of future cash flows expected to be generated by the business and the selection of discount rates. When performing this analysis, we also consider multiples of earnings from comparable public companies and recent market transactions. Pursuant to our practice of performing quantitative assessments of our reporting units approximately once every four years, our current year impairment testing for goodwill in ourCable Communications and NBCUniversal segments was based on quantitative assessments. Based on these assessments, the estimated fair values of these reporting units substantially exceeded their carrying values and no impairment was required. The goodwill in our Sky segment resulted from our acquisition of Sky in the fourth quarter of 2018 and has been in close proximity to its carrying value. We performed a quantitative assessment for goodwill in our Sky reporting unit in the current year and determined that the fair value had declined, resulting in an impairment of$8.1 billion (see Note 10). In preparing the quantitative assessment, we estimated the fair value of the Sky reporting unit using a discounted cash flow analysis. The significant judgments in the discounted cash flow analysis for the Sky reporting unit included estimated future cash flows generated by the business, including the estimated impacts of macroeconomic conditions in the Sky territories, and the selection of the discount rate, which increased by 125 basis points compared to the analysis in 2021. We evaluated the fair value indicated under the discounted cash flow model considering multiples of earnings from comparable public companies and recent market transactions.
Changes in market conditions, laws and regulations, and key assumptions made in future quantitative assessments, including expected cash flows, competitive factors and discount rates, could negatively impact the results of future impairment testing and could result in the recognition of an additional impairment charge.
Cable Franchise Rights
Our cable franchise rights assets result from agreements we have with state and local governments that allow us to construct and operate a cable business within a specified geographic area. The value of a franchise is derived from the economic benefits we receive from the right to solicit new customers and to market additional services in a particular service area. The amounts we record for cable franchise rights are primarily a result of cable system acquisitions. Typically when we acquire a cable system, the most significant asset we record is the value of the cable franchise rights. Often these cable system acquisitions include multiple franchise areas. We currently serve more than 6,500 franchise areas inthe United States . We have concluded that our cable franchise rights have an indefinite useful life since there are no legal, regulatory, contractual, competitive, economic or other factors that limit the period over which these rights will contribute to our cash flows. Accordingly, we do not amortize our cable franchise rights. For purposes of impairment testing, we have grouped the recorded values of our various cable franchise rights into our threeCable Communications divisions or units of account. We evaluate the unit of account periodically to ensure our impairment testing is performed at an appropriate level.
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When performing a quantitative assessment, we estimate the fair values of our cable franchise rights primarily based on a discounted cash flow analysis that involves significant judgment, including the estimate of future cash flows and the selection of discount rates.
Pursuant to our practice of performing quantitative assessments of cable franchise rights approximately once every four years, our current year impairment testing was based on a quantitative assessment. Based on this assessment, the estimated fair values of our franchise rights substantially exceeded their carrying values and no impairment was required.
Changes in market conditions, laws and regulations and key assumptions made in future quantitative assessments, including expected cash flows, competitive factors and discount rates, could negatively impact the results of future impairment testing and could result in the recognition of an impairment charge.
Film and Television Content
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. We have determined that the predominant monetization strategy for the substantial majority of our content is on an individual basis. Amortization for owned content predominantly monetized on an individual basis and accrued costs associated with participations and residuals payments are recorded using the individual film forecast computation method, which recognizes the costs in the same ratio as the associated ultimate revenue. Our estimates of ultimate revenue for films generally include revenue from all sources that are expected to be earned within 10 years from the date of a film's initial release. These estimates are based on the distribution strategy and historical performance of similar content, as well as factors unique to the content itself. The most sensitive factor affecting our estimate of ultimate revenue for a film intended for theatrical release is the film's theatrical performance, as subsequent revenue from the licensing and sale of a film has historically exhibited a high correlation to its theatrical performance. Upon a film's release, our estimates of revenue from succeeding markets, including from content licensing across multiple platforms and home entertainment sales, are revised based on historical relationships and an analysis of current market trends. With respect to television series or other owned television programming, the most sensitive factor affecting our estimate of ultimate revenue is whether the series can be successfully licensed beyond its initial license window. Initial estimates of ultimate revenue are limited to the amount of revenue attributed to the initial license window. Once it is determined that a television series or other owned television programming can be licensed beyond the initial license window, revenue estimates for these additional windows or platforms, such asU.S. and international syndication, home entertainment, and other distribution platforms, are included in ultimate revenue. Revenue estimates for produced episodes include revenue expected to be earned within 10 years of delivery of the initial episode or, if still in production, 5 years from the delivery of the most recent episode, if later. We capitalize the costs of licensed content when the license period begins, the content is made available for use and the costs of the licenses are known. Licensed content is amortized as the associated programs are used, incorporating estimated viewing patterns. We recognize the costs of multiyear, live-event sports rights as the rights are utilized over the contract term based on estimated relative value. Estimated relative value is generally based on terms of the contract and the nature of and potential revenue generation of the deliverables within the contract. Capitalized film and television costs are subject to impairment testing when certain triggering events are identified. The substantial majority of our owned content is evaluated for impairment on an individual title basis. Licensed content that is not part of a film group is tested for impairment primarily on a channel, network or platform basis, with the exception of our broadcast networks and owned local broadcast television stations, which are tested on a daypart basis. Sports rights are accounted for as executory contracts and are not subject to impairment. When performing an impairment assessment, we estimate fair value primarily based on a discounted cash flow analysis that involves significant judgment, including market participant estimates of future cash flows, which are supported by internal forecasts. Impairments of capitalized film and television costs were not material in any of the periods presented.
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