Microsoft Excel LibreOffice Calc

Analysis of Operating Leases

Difficulty: Advanced


Present Value of Future Operating Lease Payments

Comcast Corp., future operating lease payments

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 (USD $ in millions) 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 (USD $ in millions) 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).


Analyst Adjustments for Operating Leases

Comcast Corp., adjustments to financial data

USD $ 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 leased assets1 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 obligations2 4,384  3,335  3,189  2,730  1,855 
Total debt (adjusted) 116,127  67,891  64,235  55,351  50,089 
Adjustment to Earnings before Interest and Tax (EBIT)
EBIT3 (as reported) 18,784  18,408  17,295  16,074  15,082 
Add-back: Rental expense 779  839  744  608  580 
Less: Depreciation expense, operating leased assets4 591  677  575  458  465 
EBIT (adjusted) 18,972  18,570  17,464  16,224  15,197 
Adjustment to Interest Expense
Interest expense (as reported) 3,542  3,086  2,942  2,702  2,617 
Add: Interest expense, operating lease obligations5 188  162  169  150  115 
Interest expense (adjusted) 3,730  3,248  3,111  2,852  2,732 

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. See Details »

3 See Details »

4 See Details »

5 See Details »


Comcast Corp., Financial Data: Reported vs. Adjusted


Adjusted Ratios for Operating Leases (Summary)

Comcast Corp., adjusted ratios

Microsoft Excel LibreOffice Calc
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%
Interest Coverage4
Reported interest coverage 5.30 5.97 5.88 5.95 5.76
Adjusted interest coverage 5.09 5.72 5.61 5.69 5.56

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).

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 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. Comcast Corp.’s adjusted debt-to-equity improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
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.
Adjusted interest coverage A solvency ratio calculated as adjusted EBIT divided by adjusted interest payments. Comcast Corp.’s adjusted interest coverage improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Comcast Corp., 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 (USD $ 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 
Ratio
Total asset turnover1 0.38 0.45 0.45 0.45 0.43
Adjusted for Operating Leases
Selected Financial Data (USD $ 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 
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

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 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 (USD $ 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 
Ratio
Debt to equity1 1.56 0.94 1.13 1.01 0.92
Adjusted for Operating Leases
Selected Financial Data (USD $ 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 
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

Ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Comcast Corp.’s adjusted debt-to-equity improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

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 (USD $ 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 
Ratio
ROA1 4.66% 12.15% 4.82% 4.90% 5.26%
Adjusted for Operating Leases
Selected Financial Data (USD $ 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 
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%

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.

Adjusted Interest Coverage

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (USD $ in millions)
Earnings before interest and tax1 (EBIT) 18,784  18,408  17,295  16,074  15,082 
Interest expense 3,542  3,086  2,942  2,702  2,617 
Ratio
Interest coverage2 5.30 5.97 5.88 5.95 5.76
Adjusted for Operating Leases
Selected Financial Data (USD $ in millions)
Adjusted EBIT 18,972  18,570  17,464  16,224  15,197 
Adjusted interest expense 3,730  3,248  3,111  2,852  2,732 
Ratio
Adjusted interest coverage3 5.09 5.72 5.61 5.69 5.56

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 See Details »

2018 Calculations

2 Interest coverage = EBIT ÷ Interest expense
= 18,784 ÷ 3,542 = 5.30

3 Adjusted interest coverage = Adjusted EBIT ÷ Adjusted interest expense
= 18,972 ÷ 3,730 = 5.09

Ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as adjusted EBIT divided by adjusted interest payments. Comcast Corp.’s adjusted interest coverage ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Estimation of Depreciation Expense, Operating Leased Assets

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Rental expense 779  839  744  608  580 
Less: Estimated interest expense, operating lease obligations1 188  162  169  150  115 
Estimated depreciation expense, operating leased assets 591  677  575  458  465 

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).


Estimation of Interest Expense, Operating Lease Obligations

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Operating leased assets, at beginning of year1 (USD $ in millions) 4,975  4,012  3,763  3,188  2,320 
Discount rate2 3.77% 4.04% 4.50% 4.70% 4.95%
Estimated interest expense, operating lease obligations3 (USD $ in millions) 188  162  169  150  115 

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 See Details »

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

2018 Calculations

3 Estimated interest expense, operating lease obligations = Operating leased assets, at beginning of year × Discount rate
= 4,975 × 3.77% = 188


Present Value of Operating Lease Payments, at Beginning of Year

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Total present value of future operating lease payments1 (USD $ in millions) 4,384  3,335  3,189  2,730  1,855 
Rental expense (USD $ in millions) 779  839  744  608  580 
Discount rate2 3.77% 4.04% 4.50% 4.70% 4.95%
Total present value of operating lease payments, at beginning of year3 (USD $ in millions) 4,975  4,012  3,763  3,188  2,320 

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 Equal to total present value of future operating lease payments. See Details »

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

2018 Calculations

3 Total present value of operating lease payments, at beginning of year = (Total present value of future operating lease payments + Rental expense) ÷ (1 + Discount rate)
= (4,384 + 779) ÷ (1 + 3.77%) = 4,975