8-K 1 nov1802_8k-1.txt =============================================================================== SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): November 18, 2002 Comcast Holdings Corporation (formerly named Comcast Corporation) (Exact Name of Registrant as Specified in Its Charter) Pennsylvania (State or Other Jurisdiction of Incorporation) 0-6983 23-1709202 (Commission File Number) (IRS Employer Identification No.) 1500 Market Street Philadelphia, PA 19102-2148 (Address of Principal Executive (Zip Code) Offices) (215) 665-1700 (Registrant's Telephone Number, Including Area Code) (Former Name or Former Address, if Changed Since Last Report) ---------------------- =============================================================================== Item 5. Other Events. On November 18, 2002, in connection with the closing of the transaction combining Comcast Holdings Corporation ("Comcast Holdings") and AT&T's broadband business, Comcast Holdings amended its articles of incorporation to change its name from "Comcast Corporation" to "Comcast Holdings Corporation". The members of the board of directors of Comcast Holdings are Arthur R. Block, David L. Cohen, Brian L. Roberts and Lawrence S. Smith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Comcast Holdings Corporation (formerly named Comcast Corporation) Date: November 18, 2002 By: /s/ Arthur R. Block ----------------------------------- Name: Arthur R. Block Title: Senior Vice President and General Counsel

HISTORICAL HISTORICAL AT&T PRO FORMA PRO FORMA COMCAST(A) BROADBAND(A) ADJUSTMENTS AT&T COMCAST ---------- ------------ ----------- ------------ (AMOUNTS IN MILLIONS) ASSETS Current Assets Cash and cash equivalents............................... $ 557.8 $ $ $ 557.8 Investments............................................. 1,057.6 414.0 1,471.6 Accounts receivable, net................................ 957.0 592.0 1,549.0 Inventories, net........................................ 414.0 414.0 Deferred income taxes................................... 135.9 135.9 Other current assets.................................... 337.7 420.0 57.5(b1) 815.2 --------- ---------- ---------- ---------- Total current assets.................................. 3,460.0 1,426.0 57.5 4,943.5 --------- ---------- ---------- ---------- INVESTMENTS............................................... 727.6 17,896.0 (1,164.0)(d) 17,459.6 --------- ---------- ---------- ---------- PROPERTY AND EQUIPMENT, NET............................... 7,023.1 14,861.0 21,884.1 --------- ---------- ---------- ---------- GOODWILL.................................................. 6,446.3 15,134.0 (7,591.0)(b2) 13,989.3 FRANCHISE RIGHTS.......................................... 16,599.4 29,083.0 45,682.4 OTHER INTANGIBLE ASSETS, NET.............................. 1,471.7 1,465.0 2,936.7 OTHER NON-CURRENT ASSETS, NET............................. 390.7 1,975.0 57.5(b3) 2,423.2 --------- ---------- ---------- ---------- $36,118.8 $ 81,840.0 $ (8,640.0) $109,318.8 ========= ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable........................................ $ 680.1 $ 712.0 $ $ 1,392.1 (40.0)(b4) Accrued expenses and other current liabilities.......... 1,371.7 2,244.0 1,786.8(b5) 5,362.5 Deferred income taxes................................... 121.8 488.0 609.8 57.5(b6) Short-term debt......................................... 6,486.0 (1,993.7)(c) 4,549.8 Current portion of long-term debt....................... 206.9 2,050.0 (1,681.8)(c) 575.1 --------- ---------- ---------- ---------- Total current liabilities............................. 2,380.5 11,980.0 (1,871.2) 12,489.3 --------- ---------- ---------- ---------- 572.5(b6) (669.2)(b7) LONG-TERM DEBT, LESS CURRENT PORTION...................... 10,543.5 13,406.0 3,675.5(c) 27,528.3 --------- ---------- ---------- ---------- DEFERRED INCOME TAXES..................................... 6,755.2 19,906.0 (79.2)(b8) 26,582.0 --------- ---------- ---------- ---------- (179.0)(b9) OTHER NON-CURRENT LIABILITIES............................. 1,421.1 836.0 (6.4)(b10) 2,071.7 --------- ---------- ---------- ---------- MINORITY INTEREST......................................... 986.7 1,210.0 2,196.7 --------- ---------- ---------- ---------- Company-Obligated Convertible Quarterly Income Preferred Securities of Subsidiary Trust Holding Solely Subordinated Debt Securities of AT&T.................... 4,725.0 (4,725.0)(b11) --------- ---------- ---------- ---------- STOCKHOLDERS' EQUITY 1,348.6(b12) Common stock............................................ 946.7 (47.3)(d) 2,248.0 (1,116.7)(d) Additional capital...................................... 11,791.5 24,234.4(b12) 34,909.2 Retained earnings....................................... 1,317.3 1,317.3 Accumulated other comprehensive loss.................... (23.7) (23.7) Combined attributed net assets.......................... 29,777.0 (29,777.0)(b13) --------- ---------- ---------- ---------- Total stockholders' equity............................ 14,031.8 29,777.0 (5,358.0) 38,450.8 --------- ---------- ---------- ---------- $36,118.8 $ 81,840.0 $ (8,640.0) $109,318.8 ========= ========== ========== ==========

COMMON ADDITIONAL STOCK CAPITAL TOTAL -------- ---------- ---------- Calculation of consideration Issuance of common stock to AT&T shareholders (1,233.6 million shares x $18.80).................... $1,233.6 $21,958.1 $ 23,191.7 Issuance of common stock to Microsoft Corporation (115.0 million shares x $18.80)...................... 115.0 2,047.0 2,162.0 Fair value of AT&T Comcast stock options resulting from the conversion of AT&T Broadband Group stock options in the merger based on Black-Scholes option pricing model........................................ 229.3 229.3 -------- --------- ---------- (b12) Comcast common stock equity consideration........... 1,348.6 24,234.4 25,583.0 (b6) Transaction costs (assumed to be funded -- $57.5 short-term debt and $572.5 long-term debt)........... 630.0 ---------- Total............................................ $ 26,213.0 ========== Preliminary estimate of fair value of identifiable net assets acquired (b13) Book value of AT&T Broadband Group................... $ 29,777.0 Elimination of AT&T Broadband Group goodwill......... (15,134.0) (b1) Current portion of deferred financing fees........... 57.5 (b3) Long-term portion of deferred financing fees......... 57.5 (b4) Elimination of accrued dividend for Microsoft Corporation QUIPS (net of tax benefit)............... 40.0 (b5) Preliminary estimate of current tax liability arising from the transaction................................. (1,786.8) (b7) Preliminary estimate of adjustment to fair value of AT&T Broadband Group assumed long-term debt.......... 669.2 (b8) Preliminary estimate of adjustment to deferred tax liability on adjustments at combined federal and state statutory rate................................. 79.2 (b9) Certain liabilities retained by AT&T related to Excite@Home........................................... 179.0 (b10) Preliminary estimate of adjustment to fair value of other non-current liabilities........................ 6.4 (b11) Redemption of Microsoft Corporation QUIPS............ 4,725.0 ---------- Preliminary estimate of adjustments to fair value of identifiable net assets acquired....................... 18,670.0 ---------- Acquisition goodwill................................... $ 7,543.0 ========== Calculation of goodwill acquisition adjustment Acquisition goodwill................................... $ 7,543.0 Gross value of AT&T Broadband Group goodwill........... (15,134.0) ---------- (b2) Goodwill acquisition adjustment...................... $ (7,591.0) ========== (i) Maximum number of shares of common stock that could be issued in the AT&T Comcast transaction..................................... 1,235.0 Share equivalent of intrinsic value of AT&T Broadband Group stock options and stock appreciation rights............................. (1.4) -------- Common stock to be issued to AT&T shareholders............................ 1,233.6 ========

HISTORICAL PRO FORMA HISTORICAL AT&T INTERCOMPANY PRO FORMA AT&T COMCAST(A) BROADBAND(A) ADJUSTMENTS ADJUSTMENTS(D) COMCAST(L) ---------- ------------ ------------ -------------- ---------- (AMOUNTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS) REVENUES Service revenues(m)............................ $ 5,756.9 $10,132.0 $(108.9)(b) $ $15,780.0 Net sales from electronic retailing............ 3,917.3 3,917.3 --------- --------- ------- --------- --------- 9,674.2 10,132.0 (108.9) 19,697.3 --------- --------- ------- --------- --------- COSTS AND EXPENSES Operating (excluding depreciation)............. 2,905.8 5,459.0 (62.8)(b) 8,302.0 Cost of goods sold from electronic retailing (excluding depreciation)..................... 2,514.0 2,514.0 Selling, general and administrative(m)......... 1,552.6 2,582.0 (22.6)(b) 4,112.0 Depreciation................................... 1,141.8 2,626.0 3,767.8 Amortization................................... 2,306.2 2,154.0 (1,882.9)(e) 2,577.3 Asset impairment, restructuring and other charges...................................... 1,494.0 1,494.0 --------- --------- ------- --------- --------- 10,420.4 14,315.0 (85.4) (1,882.9) 22,767.1 --------- --------- ------- --------- --------- OPERATING LOSS................................... (746.2) (4,183.0) (23.5) 1,882.9 (3,069.8) OTHER INCOME (EXPENSE) 61.4(f) Interest expense............................... (731.8) (1,735.0) 64.9(g) (2,340.5) Investment income (expense).................... 1,061.7 (1,947.0) (18.7)(b) (904.0) (106.0)(h) Equity in net income (losses) of affiliates.... (28.5) 148.0(e) 13.5 Other income (expense)......................... 1,301.0 (927.0) 374.0 --------- --------- ------- --------- --------- 1,602.4 (4,609.0) (18.7) 168.3 (2,857.0) --------- --------- ------- --------- --------- INCOME (LOSS) BEFORE INCOME TAXES, MINORITY INTEREST, EXTRAORDINARY ITEMS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE.................... 856.2 (8,792.0) (42.2) 2,051.2 (5,926.8) (576.7)(i) INCOME TAX (EXPENSE) BENEFIT..................... (470.2) 3,857.0 (750.3)(c) 37.0(h) 2,096.8 --------- --------- ------- --------- --------- INCOME (LOSS) BEFORE MINORITY INTEREST, EXTRAORDINARY ITEMS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE.............................. 386.0 (4,935.0) (792.5) 1,511.5 (3,830.0) Net loss from equity investments................. (69.0) 69.0(h) MINORITY INTEREST INCOME (EXPENSE)............... (160.4) 833.0 (24.0)(b) 160.0(j) 808.6 --------- --------- ------- --------- --------- INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE......... $ 225.6 $(4,171.0) $(816.5) $ 1,740.5 $(3,021.4) ========= ========= ======= ========= ========= Earnings (loss) per share from continuing operations -- basic............................ $ 0.24 $ (1.34) Earnings (loss) per share from continuing operations -- assuming dilution................ $ 0.23 $ (1.34) Weighted average number of common shares outstanding -- basic........................... 949.7 1,301.3(k) 2,251.0 Weighted average number of common shares outstanding -- assuming dilution............... 964.5 1,286.5(k) 2,251.0

HISTORICAL PRO FORMA HISTORICAL AT&T INTERCOMPANY PRO FORMA AT&T COMCAST(A) BROADBAND(A) ADJUSTMENTS ADJUSTMENTS(D) COMCAST(L) ---------- ------------ ------------ -------------- ---------- (AMOUNTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS) REVENUES Service revenues..................... $ 3,393.4 $ 4,965.0 $(23.5)(b) $ $ 8,334.9 Net sales from electronic retailing.......................... 1,988.0 1,988.0 --------- ---------- ------ --------- ---------- 5,381.4 4,965.0 (23.5) 10,322.9 --------- ---------- ------ --------- ---------- COSTS AND EXPENSES Operating (excluding depreciation)... 1,469.4 2,591.0 (13.2)(b) 4,047.2 Cost of goods sold from electronic retailing (excluding depreciation)...................... 1,260.0 1,260.0 Selling, general and administrative..................... 977.2 1,342.0 (10.3)(b) 2,308.9 Depreciation......................... 676.6 1,357.0 2.033.6 Amortization......................... 98.7 109.0 207.7 Goodwill and franchise impairment charges............................ 16,525.0 16,525.0 Asset impairment, restructuring and other charges...................... 56.0 56.0 --------- ---------- ------ --------- ---------- 4,481.9 21,980.0 (23.5) 26,438.4 --------- ---------- ------ --------- ---------- OPERATING INCOME (LOSS)................ 899.5 (17,015.0) (16,115.5) OTHER INCOME (EXPENSE) (42.8)(f) Interest expense..................... (369.3) (732.0) (0.8)(g) (1,144.9) Investment expense................... (707.1) (1,217.0) (1,924.1) Equity in net losses of affiliates... (48.4) (1,004.0)(h) (1,052.4) Other income (expense)............... (14.0) 331.0 317.0 --------- ---------- ------ --------- ---------- (1,138.8) (1,618.0) (1,047.6) (3,804.4) --------- ---------- ------ --------- ---------- LOSS BEFORE INCOME TAXES, MINORITY INTEREST, EXTRAORDINARY ITEMS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE............................... (239.3) (18,633.0) (1,047.6) (19,919.9) 16.8(i) INCOME TAX BENEFIT..................... 30.2 5,506.0 387.0(h) 5,940.0 --------- ---------- ------ --------- ---------- LOSS BEFORE MINORITY INTEREST, EXTRAORDINARY ITEMS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE.......... (209.1) (13,127.0) (643.8) (13,979.9) Net loss related to equity investments.......................... (617.0) 617.0(h) MINORITY INTEREST EXPENSE.............. (89.4) (140.0) 80.0(j) (149.4) --------- ---------- ------ --------- ---------- LOSS BEFORE EXTRAORDINARY ITEMS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE............................... $ (298.5) $(13,884.0) $ $ 53.2 $(14,129.3) ========= ========== ====== ========= ========== Loss per share from continuing operations -- basic.................. $ (0.31) $ (6.27) Loss per share from continuing operations -- assuming dilution...... $ (0.31) $ (6.27) Weighted average number of common shares outstanding -- basic.......... 951.9 1,301.3(k) 2,253.2 Weighted average number of common shares outstanding -- assuming dilution............................. 951.9 1,301.3(k) 2,253.2

SIX MONTHS YEAR ENDED ENDED WEIGHTED AVERAGE LIFE DECEMBER 31, 2001 JUNE 30, 2002 --------------------- ----------------- ------------- Five years Net Income........................................ $61.5 $30.8 Per Share......................................... $0.03 $0.01 Ten years Net Income........................................ $30.8 $15.4 Per Share......................................... $0.01 $0.01 Twenty years Net Income........................................ $15.4 $ 7.7 Per Share......................................... $0.01 $0.00

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