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, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Total undiscounted future operating lease payments (USD $ in millions) 4,074  4,007  3,459  2,261  2,144 
Discount rate1 4.04% 4.50% 4.70% 4.95% 4.80%
Total present value of future operating lease payments (USD $ in millions) 3,335  3,189  2,730  1,855  1,780 

Based on: 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), 10-K (filing date: 2014-02-12).

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 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).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 4.80%
2014 385  2014 385  367 
2015 335  2015 335  305 
2016 293  2016 293  255 
2017 252  2017 252  209 
2018 206  2018 206  163 
2019 and thereafter 673  2019 206  155 
2020 206  148 
2021 206  142 
2022 55  36 
Total: 2,144  2,144  1,780 

Based on: 10-K (filing date: 2014-02-12).


Analyst Adjustments for Operating Leases

Comcast Corp., adjustments to financial data

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Adjustment to Total Assets
Total assets (as reported) 186,949  180,500  166,574  159,339  158,813 
Add: Operating leased assets1 3,335  3,189  2,730  1,855  1,780 
Total assets (adjusted) 190,284  183,689  169,304  161,194  160,593 
Adjustment to Total Debt
Total debt (as reported) 64,556  61,046  52,621  48,234  47,847 
Add: Operating lease obligations2 3,335  3,189  2,730  1,855  1,780 
Total debt (adjusted) 67,891  64,235  55,351  50,089  49,627 
Adjustment to Earnings before Interest and Tax (EBIT)
EBIT3 (as reported) 18,408  17,295  16,074  15,082  13,689 
Add-back: Rent expense 839  744  608  580  616 
Less: Depreciation expense, operating leased assets4 677  575  458  465  506 
EBIT (adjusted) 18,570  17,464  16,224  15,197  13,799 
Adjustment to Interest Expense
Interest expense (as reported) 3,086  2,942  2,702  2,617  2,574 
Add: Interest expense, operating lease obligations5 162  169  150  115  110 
Interest expense (adjusted) 3,248  3,111  2,852  2,732  2,684 

Based on: 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), 10-K (filing date: 2014-02-12).

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

3 See Details »

4 See Details »

5 See Details »


Adjusted Ratios for Operating Leases (Summary)

Comcast Corp., adjusted ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Total Asset Turnover1
Reported total asset turnover 0.45 0.45 0.45 0.43 0.41
Adjusted total asset turnover 0.44 0.44 0.44 0.43 0.40
Debt to Equity2
Reported debt to equity 0.94 1.13 1.01 0.92 0.94
Adjusted debt to equity 0.99 1.19 1.06 0.95 0.98
Return on Assets3 (ROA)
Reported ROA 12.15% 4.82% 4.90% 5.26% 4.29%
Adjusted ROA 11.94% 4.73% 4.82% 5.20% 4.24%
Interest Coverage4
Reported interest coverage 5.97 5.88 5.95 5.76 5.32
Adjusted interest coverage 5.72 5.61 5.69 5.56 5.14

Based on: 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), 10-K (filing date: 2014-02-12).

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 deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders' equity. Comcast Corp.'s adjusted debt-to-equity deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Comcast Corp.'s adjusted ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.
Adjusted interest coverage A solvency ratio calculated as adjusted EBIT divided by adjusted interest payments. Comcast Corp.'s adjusted interest coverage deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
As Reported
Revenue (USD $ in millions) 84,526  80,403  74,510  68,775  64,657 
Total assets (USD $ in millions) 186,949  180,500  166,574  159,339  158,813 
Total asset turnover1 0.45 0.45 0.45 0.43 0.41
Adjusted for Operating Leases
Revenue (USD $ in millions) 84,526  80,403  74,510  68,775  64,657 
Adjusted total assets (USD $ in millions) 190,284  183,689  169,304  161,194  160,593 
Adjusted total asset turnover2 0.44 0.44 0.44 0.43 0.40

Based on: 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), 10-K (filing date: 2014-02-12).

2017 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 84,526 ÷ 186,949 = 0.45

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 84,526 ÷ 190,284 = 0.44

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 deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
As Reported
Total debt (USD $ in millions) 64,556  61,046  52,621  48,234  47,847 
Total Comcast Corporation shareholders' equity (USD $ in millions) 68,606  53,943  52,269  52,711  50,694 
Debt to equity1 0.94 1.13 1.01 0.92 0.94
Adjusted for Operating Leases
Adjusted total debt (USD $ in millions) 67,891  64,235  55,351  50,089  49,627 
Total Comcast Corporation shareholders' equity (USD $ in millions) 68,606  53,943  52,269  52,711  50,694 
Adjusted debt to equity2 0.99 1.19 1.06 0.95 0.98

Based on: 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), 10-K (filing date: 2014-02-12).

2017 Calculations

1 Debt to equity = Total debt ÷ Total Comcast Corporation shareholders' equity
= 64,556 ÷ 68,606 = 0.94

2 Adjusted debt to equity = Adjusted total debt ÷ Total Comcast Corporation shareholders' equity
= 67,891 ÷ 68,606 = 0.99

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 deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
As Reported
Net income attributable to Comcast Corporation (USD $ in millions) 22,714  8,695  8,163  8,380  6,816 
Total assets (USD $ in millions) 186,949  180,500  166,574  159,339  158,813 
ROA1 12.15% 4.82% 4.90% 5.26% 4.29%
Adjusted for Operating Leases
Net income attributable to Comcast Corporation (USD $ in millions) 22,714  8,695  8,163  8,380  6,816 
Adjusted total assets (USD $ in millions) 190,284  183,689  169,304  161,194  160,593 
Adjusted ROA2 11.94% 4.73% 4.82% 5.20% 4.24%

Based on: 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), 10-K (filing date: 2014-02-12).

2017 Calculations

1 ROA = 100 × Net income attributable to Comcast Corporation ÷ Total assets
= 100 × 22,714 ÷ 186,949 = 12.15%

2 Adjusted ROA = 100 × Net income attributable to Comcast Corporation ÷ Adjusted total assets
= 100 × 22,714 ÷ 190,284 = 11.94%

Ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Comcast Corp.'s adjusted ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Adjusted Interest Coverage

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
As Reported
Earnings before interest and tax1 (EBIT) (USD $ in millions) 18,408  17,295  16,074  15,082  13,689 
Interest expense (USD $ in millions) 3,086  2,942  2,702  2,617  2,574 
Interest coverage2 5.97 5.88 5.95 5.76 5.32
Adjusted for Operating Leases
Adjusted EBIT (USD $ in millions) 18,570  17,464  16,224  15,197  13,799 
Adjusted interest expense (USD $ in millions) 3,248  3,111  2,852  2,732  2,684 
Adjusted interest coverage3 5.72 5.61 5.69 5.56 5.14

Based on: 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), 10-K (filing date: 2014-02-12).

1 See Details »

2017 Calculations

2 Interest coverage = EBIT ÷ Interest expense
= 18,408 ÷ 3,086 = 5.97

3 Adjusted interest coverage = Adjusted EBIT ÷ Adjusted interest expense
= 18,570 ÷ 3,248 = 5.72

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 deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Estimation of Depreciation Expense, Operating Leased Assets

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Rent expense 839  744  608  580  616 
Less: Estimated interest expense, operating lease obligations1 162  169  150  115  110 
Estimated depreciation expense, operating leased assets 677  575  458  465  506 

Based on: 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), 10-K (filing date: 2014-02-12).


Estimation of Interest Expense, Operating Lease Obligations

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Operating leased assets, at beginning of year1 (USD $ in millions) 4,012  3,763  3,188  2,320  2,287 
Discount rate2 4.04% 4.50% 4.70% 4.95% 4.80%
Estimated interest expense, operating lease obligations3 (USD $ in millions) 162  169  150  115  110 

Based on: 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), 10-K (filing date: 2014-02-12).

1 See Details »

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

2017 Calculations

3 Estimated interest expense, operating lease obligations = Operating leased assets, at beginning of year × Discount rate
= 4,012 × 4.04% = 162


Present Value of Operating Lease Payments, at Beginning of Year

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Total present value of future operating lease payments1 (USD $ in millions) 3,335  3,189  2,730  1,855  1,780 
Rent expense (USD $ in millions) 839  744  608  580  616 
Discount rate2 4.04% 4.50% 4.70% 4.95% 4.80%
Total present value of operating lease payments, at beginning of year3 (USD $ in millions) 4,012  3,763  3,188  2,320  2,287 

Based on: 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), 10-K (filing date: 2014-02-12).

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

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

2017 Calculations

3 Total present value of operating lease payments, at beginning of year = (Total present value of future operating lease payments + Rent expense) ÷ (1 + Discount rate)
= (3,335 + 839) ÷ (1 + 4.04%) = 4,012