Comcast CMCSA · USD

Note 2: Segment InformationWe are a global media and technology company with five segments: Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios and Theme Parks. Our segments align to our primary business operations and how our Chairman and Chief Executive Officer, the chief operating decision maker, reviews our operating results. See Note 3 for a description of the various products and services within each segment.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. Transactions between our segments generally include intercompany profit consistent with third-party transactions. The Residential Connectivity & Platforms and the Business Services Connectivity segments use certain shared infrastructure, including our network in the United States, and each segment is presented with its direct costs and an allocation of shared costs, as well as revenue from its customers.Our financial data by segment is presented in the tables below. We do not present asset information for our segments as this information is not used to allocate resources.

Note 3: Revenue Year ended December 31 (in millions)20252024(a)2023(a)Domestic broadband$25,837 $25,660 $24,999 Domestic wireless4,967 4,273 3,664 International connectivity4,963 4,503 3,918 Total residential connectivity35,767 34,435 32,580 Video26,387 27,791 29,576 Advertising3,712 4,089 3,969 Other4,838 5,259 5,820 Total Residential Connectivity & Platforms Segment70,704 71,574 71,946 Total Business Services Connectivity Segment10,237 9,701 9,255 Domestic advertising8,382 10,008 8,600 Domestic distribution11,613 11,826 10,663 International networks4,977 4,282 4,109 Other2,118 2,031 1,983 Total Media Segment27,090 28,148 25,355 Content licensing8,199 8,063 8,231 Theatrical1,621 1,693 2,079 Other1,465 1,335 1,315 Total Studios Segment11,286 11,092 11,625 Total Theme Parks Segment9,836 8,617 8,947 Other revenue3,090 2,982 2,827 Eliminations(b)(8,535)(8,383)(8,383)Total revenue$123,707 $123,731 $121,572 (a)Beginning in the first quarter of 2025, commission revenue from the sale of certain DTC streaming services and revenue related to certain equipment are presented in video revenue. Previously, these amounts were presented in domestic broadband and international connectivity. Prior periods have been reclassified to reflect the current year presentation.(b)See Note 2 for additional information on intersegment revenue transactions. We operate primarily in the United States but also in select international markets. The table below summarizes our consolidated revenue from customers in certain geographic locations. Year ended December 31 (in millions)202520242023United States$95,143 $96,237 $94,375 United Kingdom15,182 14,194 13,364 Other13,382 13,300 13,833 Total revenue$123,707 $123,731 $121,572 Residential Connectivity & Platforms SegmentResidential Connectivity & Platforms generates revenue from customers that subscribe to our residential broadband and wireless connectivity services, residential and business video services and residential wireline voice services in the United States, the United Kingdom and Italy. We offer these services individually and as bundled services at a discounted rate.Subscription rates and related charges vary according to the services and features customers receive, and customers are typically billed in advance and pay on a monthly basis. Revenue from customers that purchase bundled services at a discounted rate is allocated between the separate services based on the respective stand-alone selling prices.

Note 15: Commitments and ContingenciesLicensed Content We have significant fixed-price purchase obligations related to long-term agreements for licensed content. Refer to Note 4 for additional information. LeasesOur leases consist primarily of real estate, vehicles and other equipment. We determine if an arrangement is a lease at inception. Lease assets and liabilities are recognized upon commencement of the lease based on the present value of the future minimum lease payments over the lease term. The lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. We generally use our incremental borrowing rate based on information available at the commencement of the lease in determining the present value of future payments. The lease asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives. Lease assets and liabilities are not recorded for leases with an initial term of one year or less. For our operating leases recorded in the balance sheets, lease expense is based on the future minimum lease payments recognized on a straight-line basis over the term of the lease plus any variable lease costs. In 2025, 2024 and 2023, operating lease expenses, inclusive of short-term and variable lease expenses, recognized in our consolidated statements of income were each $1.2 billion.Operating Lease Assets and Liabilities Recorded in our Consolidated Balance SheetsDecember 31 (in millions)20252024Other noncurrent assets, net$5,287 $5,524 Accrued expenses and other current liabilities$686 $751 Other noncurrent liabilities$5,410 $5,569 Future Minimum Lease Commitments for Operating Leases(in millions)December 31,20252026$889 2027840 2028703 2029494 2030382 Thereafter6,337 Total future minimum lease payments9,646 Less: imputed interest (3,549)Total liability$6,097 The weighted-average remaining lease terms for operating leases and the weighted-average discount rates used to calculate our operating lease liabilities as of December 31, 2025 were 18 years and 4.2%, respectively, and as of December 31, 2024 were 17 years and 4.2%, respectively.In 2025, 2024 and 2023, cash payments for operating leases recorded in the consolidated balance sheets were $1.0 billion, $1.0 billion and $963 million, respectively. Lease assets and liabilities associated with operating leases entered into or modified were not material in any period presented.

Note 6: DebtDebt OutstandingDecember 31 (in billions)Weighted-Average Interest Rate as of December 31, 2025(a)Weighted-Average Interest Rate as of December 31, 2024(a)2025(b)2024(b)Term loans2.5 %3.2 %$3.2 $3.1 Senior notes with maturities of 5 years or less, at face value3.3 %3.4 %25.4 26.7 Senior notes with maturities between 5 and 10 years, at face value4.2 %3.6 %18.7 18.1 Senior notes with maturities greater than 10 years, at face value3.8 %3.9 %55.4 55.4 Finance lease obligations and other2.1 1.9 Debt issuance costs, premiums, discounts, fair value adjustments for acquisition accounting and hedged positions, net(5.9)(6.0)Total debt98.9 99.1 Less: Current portion6.0 4.9 Noncurrent portion of debt$93.0 $94.2 (a)Represents the weighted-average interest rates based on the stated coupon rate. The weighted-average effective interest rate for total debt, including the effects of amortization of debt issuance costs, premiums, discounts and fair value adjustments for acquisition accounting and excluding finance lease obligations and the effects of our derivative financial instruments, was 4.0% as of both December 31, 2025 and 2024.(b)As of December 31, 2025, included in our outstanding debt were foreign currency denominated senior notes and term loans with principal amounts of £3.3 billion, €8.0 billion and ¥22.3 billion RMB. As of December 31, 2024, included in our outstanding debt were foreign currency denominated senior notes and term loans with principal amounts of £3.3 billion, €8.5 billion and ¥22.3 billion RMB.Our senior notes are unsubordinated and unsecured obligations and are subject to parent and/or subsidiary guarantees. As of December 31, 2025 and 2024, substantially all of our debt obligations were fixed-rate debt and our debt had an estimated fair value of $90.3 billion and $89.8 billion, respectively. 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. Principal Maturities of Term Loans and Senior Notes(in billions)2026$5.8 2027$4.9 2028$5.6 2029$4.7 2030$4.8 Revolving Credit Facility and Commercial Paper ProgramIn May 2024, we entered into a new $11.

Note 5: Income TaxesIncome (Loss) Before Income TaxesYear ended December 31 (in millions)202520242023Domestic$26,766 $19,615 $22,164 Foreign (1,000)(942)(1,686)$25,766 $18,673 $20,478 Components of Income Tax ExpenseYear ended December 31 (in millions)202520242023Current Expense (Benefit):Federal$2,286 $2,194 $6,270 State720 1,115 1,591 Foreign427 389 249 3,432 3,698 8,110 Deferred Expense (Benefit):Federal2,420 (599)(2,126)State539 (49)(468)Foreign(285)(253)(145)2,674 (902)(2,739)Income tax expense (benefit)$6,106 $2,796 $5,371 Our income tax expense (benefit) differs from the federal statutory amount because of the effect of the items detailed in the table below. 202520242023Year ended December 31 (in millions)Amount%Amount%Amount%Federal tax at statutory rate$5,411 21.0 %$3,921 21.0 %$4,300 21.0 %State and local income tax, net of federal income tax effect(a)710 2.8 %338 1.8 %426 2.1 %Foreign tax effects353 1.4 %364 2.0 %461 2.3 %Effect of cross-border tax laws(81)(0.3)%(95)(0.5)%(88)(0.4)%Tax credits(280)(1.1)%(328)(1.8)%(280)(1.4)%Nontaxable or nondeductible items141 0.6 %55 0.3 %90 0.4 %Changes in unrecognized tax benefits281 1.1 %476 2.6 %459 2.2 %OtherInternal corporate reorganization(174)(0.7)%(1,920)(10.3)%— — %Other adjustments(254)(1.0)%(16)(0.1)%3 — %Effective tax rate$6,106 23.7 %$2,796 15.0 %$5,371 26.2 %(a) The majority of the tax effect in this category was attributable to state taxes in Illinois, Florida, New Jersey, New York and Pennsylvania in 2025; California, Illinois and New Jersey in 2024; and California, Illinois, Massachusetts, New Jersey and New York in 2023.We base our provision for income taxes on our current period income, changes in our deferred income tax assets and liabilities, income tax rates, changes in estimates of our uncertain tax positions, tax planning opportunities available in the jurisdictions in which we operate and excess tax benefits or deficiencies that arise when the tax consequences of share-based compensation differ from amounts previously recognized in the statements of income. We recognize deferred tax assets and liabilities when there are temporary differences between the financial reporting basis and tax basis of our assets and liabilities and for the expected benefits of using net operating loss carryforwards. When a change in the tax rate or tax law has an impact on deferred taxes, we apply the change based on the years in which the temporary differences are expected to reverse.

Note 13: Share-Based CompensationYear ended December 31 (in millions)202520242023Share-based compensation expense$1,108 $1,069 $1,021 Related income tax benefit$181 $222 $203 Our share-based compensation plans consist primarily of awards of RSUs and stock options to certain employees and directors as part of our long-term incentive compensation structure. Awards generally vest over a period of 5 years and, in the case of stock options, have a 10 year term. RSUs include performance stock units awarded to certain senior executives with vesting after 3 years based upon the achievement of certain performance conditions. These performance stock units are not material to our consolidated results of operations in any period presented. As of December 31, 2025, virtually all of our stock options outstanding were net settled stock options, which result in fewer shares being issued and no cash proceeds being received by us when the options are exercised. Additionally, eligible employees may purchase shares of our common stock at a discount under our employee stock purchase plans. Stock Options and Restricted Share UnitsAs of December 31, 2025, unless otherwise stated (in millions, except per share data)StockOptionsRSUsAwards granted during 20251 46 Weighted-average exercise price of awards granted during 2025$35.98 Stock options outstanding and unvested RSUs204 78 Weighted-average exercise price of stock options outstanding$41.93 Weighted-average fair value at grant date of unvested RSUs $37.71 The cost associated with our share-based compensation is based on an award’s estimated fair value at the date of grant and is recognized over the period in which any related services are provided. RSUs are primarily valued based on the closing price of our common stock on the date of grant and are discounted for the lack of dividends, if any, during the vesting period. We use the Black-Scholes option pricing model to estimate the fair value of stock option awards. The table below presents the weighted-average fair value on the date of grant of RSUs and stock options awarded under our various plans and the related weighted-average valuation assumptions. Year ended December 31202520242023RSUs fair value$34.49 $42.23 $37.14 Stock options fair value$7.21 $9.93 $8.41 Stock Option Valuation Assumptions:Dividend yield3.7 %2.9 %3.2 %Expected volatility25.3 %24.8 %26.2 %Risk-free interest rate4.0 %4.2 %4.2 %Expected option life (in years)5.95.15.

Our management, with involvement and input from our Board of Directors, performs an annual enterprise-wide risk management (“ERM”) assessment to identify and manage key existing and emerging risks for our company. Our ERM process assesses the characteristics and circumstances of the evolving business environment at the time and seeks to identify both the potential impacts to our company of a particular risk and the velocity with which the risk may manifest (e.g., rapidly in less than three months or more slowly in more than twelve months). Our executive management team has the overall responsibility for, and oversight of, our ERM process, and an ERM steering committee manages the process, with one or more senior business executives then monitoring and managing each of the identified risks.Cybersecurity is among the risks identified for Board-level oversight as a result of our most recent ERM assessment, with our Audit Committee of the Board overseeing our policies, practices and assessments with respect to cybersecurity.Network and information systems and other technologies, including those that are related to our network management, customer service operations and programming delivery and are embedded in our products and services, are critical to our business activities. We frequently obtain certain confidential, proprietary and/or personal information about our customers, personnel and vendors, which in many cases is provided or made available to third-party vendors who agree to protect it. As a result, we have multiple layers of security designed to detect and block cybersecurity events, as well as a dedicated team of cybersecurity personnel, who assist our CISOs in helping to assess, identify, monitor, detect and manage cybersecurity risks, threats, vulnerabilities and incidents. In the normal course, we engage assessors, consultants and other third parties to assist in various cyber-related matters. For example, an outside consulting firm conducts a National Institute of Standards and Technology and International Organization for Standardization-based cybersecurity capability maturity assessment every three years, which is reviewed with the Audit Committee, and our security teams leverage third-party advisors, as appropriate. We also perform penetration tests, data recovery testing, security audits and risk assessments throughout the year.

Note 12: EquityCommon StockIn the aggregate, holders of our Class A common stock have 662/3% of the voting power of our common stock and holders of our Class B common stock have 331/3% of the voting power of our common stock, which percentage is generally non-dilutable under the terms of our articles of incorporation. Each share of our Class B common stock is entitled to 15 votes. The number of votes held by each share of our Class A common stock depends on the number of shares of Class A and Class B common stock outstanding at any given time. The 331/3% aggregate voting power of our Class B common stock cannot be diluted by additional issuances of any other class of common stock. Our Class B common stock is convertible, share for share, into Class A common stock, subject to certain restrictions.We present excise tax payments related to repurchases of common stock within repurchases of common stock under repurchase program and employee plans in the consolidated statements of cash flows.Shares of Common Stock Outstanding(in millions)Class AClass BBalance, December 31, 20224,211 9 Stock compensation plans14 — Repurchases and retirements of common stock(262)— Employee stock purchase plans7 — Balance, December 31, 20233,969 9 Stock compensation plans14 — Repurchases and retirements of common stock(212)— Employee stock purchase plans6 — Balance, December 31, 20243,778 9 Stock compensation plans14 — Repurchases and retirements of common stock(205)— Employee stock purchase plans8 — Balance, December 31, 20253,595 9 Weighted-Average Common Shares OutstandingYear ended December 31 (in millions)202520242023Weighted-average number of common shares outstanding – basic3,699 3,885 4,122 Effect of dilutive securities10 24 25 Weighted-average number of common shares outstanding – diluted3,709 3,908 4,148 Antidilutive securities237 184 169 Weighted-average common shares outstanding used in calculating 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”).