Microsoft Excel LibreOffice Calc

Comcast Corp. (CMCSA)


Analysis of Operating Leases

High level of difficulty

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Comcast Corp., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Total undiscounted future operating lease payments 5,263  4,074  4,007  3,459  2,261 
Discount rate1 3.77% 4.04% 4.50% 4.70% 4.95%
 
Total present value of future operating lease payments 4,384  3,335  3,189  2,730  1,855 

Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-27).

1 Weighted-average interest rate for Comcast Corp.’s debt

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.77%
2019 759  2019 759  731 
2020 709  2020 709  658 
2021 616  2021 616  551 
2022 480  2022 480  414 
2023 414  2023 414  344 
2024 and thereafter 2,285  2024 414  332 
2025 414  320 
2026 414  308 
2027 414  297 
2028 414  286 
2029 215  143 
Total: 5,263  5,263  4,384 

Based on: 10-K (filing date: 2019-01-31).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 4.04%
2018 559  2018 559  537 
2019 512  2019 512  473 
2020 457  2020 457  406 
2021 391  2021 391  334 
2022 326  2022 326  267 
2023 and thereafter 1,829  2023 326  257 
2024 326  247 
2025 326  237 
2026 326  228 
2027 326  219 
2028 199  129 
Total: 4,074  4,074  3,335 

Based on: 10-K (filing date: 2018-01-31).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 4.50%
2017 517  2017 517  495 
2018 485  2018 485  444 
2019 433  2019 433  379 
2020 378  2020 378  317 
2021 321  2021 321  258 
2022 and thereafter 1,873  2022 321  246 
2023 321  236 
2024 321  226 
2025 321  216 
2026 321  207 
2027 268  165 
Total: 4,007  4,007  3,189 

Based on: 10-K (filing date: 2017-02-03).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 4.70%
2016 452  2016 452  432 
2017 412  2017 412  376 
2018 370  2018 370  322 
2019 324  2019 324  270 
2020 284  2020 284  226 
2021 and thereafter 1,617  2021 284  216 
2022 284  206 
2023 284  197 
2024 284  188 
2025 284  179 
2026 197  119 
Total: 3,459  3,459  2,730 

Based on: 10-K (filing date: 2016-02-05).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 4.95%
2015 399  2015 399  380 
2016 359  2016 359  326 
2017 299  2017 299  259 
2018 253  2018 253  209 
2019 197  2019 197  155 
2020 and thereafter 754  2020 197  147 
2021 197  140 
2022 197  134 
2023 163  106 
Total: 2,261  2,261  1,855 

Based on: 10-K (filing date: 2015-02-27).


Adjustments to Financial Statements for Operating Leases

Comcast Corp., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Adjustment to Total Assets
Total assets (as reported) 251,684  186,949  180,500  166,574  159,339 
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 4,384  3,335  3,189  2,730  1,855 
Total assets (adjusted) 256,068  190,284  183,689  169,304  161,194 
Adjustment to Total Debt
Total debt (as reported) 111,743  64,556  61,046  52,621  48,234 
Add: Operating lease liability (before adoption of FASB Topic 842)2 4,384  3,335  3,189  2,730  1,855 
Total debt (adjusted) 116,127  67,891  64,235  55,351  50,089 

Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-27).

1, 2 Equal to total present value of future operating lease payments.


Comcast Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Comcast Corp., adjusted financial ratios

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Total Asset Turnover1
Reported total asset turnover 0.38 0.45 0.45 0.45 0.43
Adjusted total asset turnover 0.37 0.44 0.44 0.44 0.43
Debt to Equity2
Reported debt to equity 1.56 0.94 1.13 1.01 0.92
Adjusted debt to equity 1.62 0.99 1.19 1.06 0.95
Return on Assets3 (ROA)
Reported ROA 4.66% 12.15% 4.82% 4.90% 5.26%
Adjusted ROA 4.58% 11.94% 4.73% 4.82% 5.20%

Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-27).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Comcast Corp.’s adjusted total asset turnover ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Comcast Corp.’s adjusted ROA improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Comcast Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Revenue 94,507  84,526  80,403  74,510  68,775 
Total assets 251,684  186,949  180,500  166,574  159,339 
Activity Ratio
Total asset turnover1 0.38 0.45 0.45 0.45 0.43
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenue 94,507  84,526  80,403  74,510  68,775 
Adjusted total assets 256,068  190,284  183,689  169,304  161,194 
Activity Ratio
Adjusted total asset turnover2 0.37 0.44 0.44 0.44 0.43

Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 94,507 ÷ 251,684 = 0.38

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 94,507 ÷ 256,068 = 0.37

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Comcast Corp.’s adjusted total asset turnover ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Total debt 111,743  64,556  61,046  52,621  48,234 
Total Comcast Corporation shareholders’ equity 71,613  68,606  53,943  52,269  52,711 
Solvency Ratio
Debt to equity1 1.56 0.94 1.13 1.01 0.92
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 116,127  67,891  64,235  55,351  50,089 
Total Comcast Corporation shareholders’ equity 71,613  68,606  53,943  52,269  52,711 
Solvency Ratio
Adjusted debt to equity2 1.62 0.99 1.19 1.06 0.95

Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Debt to equity = Total debt ÷ Total Comcast Corporation shareholders’ equity
= 111,743 ÷ 71,613 = 1.56

2 Adjusted debt to equity = Adjusted total debt ÷ Total Comcast Corporation shareholders’ equity
= 116,127 ÷ 71,613 = 1.62

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Comcast Corporation 11,731  22,714  8,695  8,163  8,380 
Total assets 251,684  186,949  180,500  166,574  159,339 
Profitability Ratio
ROA1 4.66% 12.15% 4.82% 4.90% 5.26%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to Comcast Corporation 11,731  22,714  8,695  8,163  8,380 
Adjusted total assets 256,068  190,284  183,689  169,304  161,194 
Profitability Ratio
Adjusted ROA2 4.58% 11.94% 4.73% 4.82% 5.20%

Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-27).

2018 Calculations

1 ROA = 100 × Net income attributable to Comcast Corporation ÷ Total assets
= 100 × 11,731 ÷ 251,684 = 4.66%

2 Adjusted ROA = 100 × Net income attributable to Comcast Corporation ÷ Adjusted total assets
= 100 × 11,731 ÷ 256,068 = 4.58%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Comcast Corp.’s adjusted ROA improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.