Related Party Transactions

9 Months Ended

Sep. 30, 2019

In the ordinary course of our business, we enter into transactions with Comcast.

We generate revenue from Comcast primarily from the distribution of our cable network programming, the fees received under retransmission consent agreements in our Broadcast Television segment and, to a lesser extent, the sale of advertising and our owned programming, and we incur expenses primarily related to advertising and various support services provided by Comcast to us.

As part of the Comcast cash management process, we and Comcast have a revolving credit agreement with a maturity date of 2026 that allows us to borrow from Comcast and for Comcast to borrow from us up to $5 billion. Depending on the receivable or payable position, amounts owed by us to Comcast or to us by Comcast under the revolving credit agreements are presented under the captions “notes payable to Comcast” and “notes receivable from Comcast,” respectively, in our condensed consolidated balance sheet and are presented as current since the amounts include daily borrowings and repayments throughout the year based on our working capital needs.

In the third quarter of 2019, using a portion of the proceeds from a collateralized obligation, we issued $1.3 billion of non-interest bearing notes due 2024 to Comcast, repaid $1.0 billion under our revolving credit agreement with Comcast, and repaid the $610 million 4.00% notes due 2049 to Comcast.

Comcast is also the counterparty to one of our contractual obligations. As of September 30, 2019, the carrying value of the liability associated with this contractual obligation was $383 million.

The following tables present transactions with Comcast and its consolidated subsidiaries that are included in our condensed consolidated financial statements.

Condensed Consolidated Statement of Income



	Three Months Ended September 30						Nine Months Ended September 30
(in millions)	2019			2018			2019			2018
Transactions with Comcast and Consolidated Subsidiaries
Revenue	$	597		$	506		$	1,808		$	1,580
Total costs and expenses	$	(73	)	$	(59	)	$	(198	)	$	(162	)
Interest expense and investment and other income (loss), net	$	(162	)	$	(9	)	$	(148	)	$	(52	)

Condensed Consolidated Balance Sheet



(in millions)	September 30, 2019		December 31, 2018
Transactions with Comcast and Consolidated Subsidiaries
Receivables, net	$	533	$	464
Notes receivable from Comcast, current	$	4,192	$	2,054
Film and television costs	$	21	$	27
Note receivable from Comcast, noncurrent	$	1,101	$	—
Other noncurrent assets, net	$	71	$	—
Accounts payable and accrued expenses related to trade creditors	$	75	$	78
Accrued expenses and other current liabilities	$	84	$	32
Notes payable to Comcast	$	91	$	54
Long-term debt (See Note 4)	$	158	$	701
Other noncurrent liabilities	$	459	$	410

Share-Based Compensation

Comcast maintains share-based compensation plans that consist primarily of awards of restricted share units and stock options to certain employees and directors as part of its approach to long-term incentive compensation. Additionally, through its employee stock purchase plans, employees are able to purchase shares of Comcast common stock at a discount through payroll deductions. Certain of our employees participate in these plans and the expense associated with their participation is settled in cash with Comcast. For the three months ended September 30, 2019 and 2018, we recognized share-based compensation expense of $45 million and $37 million, respectively. For the nine months ended September 30, 2019 and 2018, we recognized share-based compensation expense of $141 million and $115 million, respectively.