-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VU8zgoq6/r2cbtBWQBAhySylN5CFFydPQWUjj2qFzSOX+8HDyDPb0ErA/Gdh5it0 XecfW+htqvyaiPuVZSGI7Q== 0000950159-03-000801.txt : 20031001 0000950159-03-000801.hdr.sgml : 20031001 20031001162958 ACCESSION NUMBER: 0000950159-03-000801 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030917 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031001 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMCAST HOLDINGS CORP CENTRAL INDEX KEY: 0000022301 STANDARD INDUSTRIAL CLASSIFICATION: CABLE & OTHER PAY TELEVISION SERVICES [4841] IRS NUMBER: 231709202 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15471 FILM NUMBER: 03921014 BUSINESS ADDRESS: STREET 1: 1500 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19102-2148 BUSINESS PHONE: 2156651700 MAIL ADDRESS: STREET 1: 1500 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19102-2148 FORMER COMPANY: FORMER CONFORMED NAME: COMCAST CORP DATE OF NAME CHANGE: 19920703 8-K 1 ch8k9-17.txt UNITED STATES 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: September 17, 2003 COMCAST HOLDINGS CORPORATION (Exact name of registrant as specified in its charter) PENNSYLVANIA 23-1709202 - -------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1500 Market Street, Philadelphia, PA 19102-2148 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (215) 665-1700 -------------------------- ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS On September 17, 2003, Comcast Corporation ("Comcast"), in accordance with the Amended and Restated Stock Purchase Agreement dated as of June 30, 2003 and executed on July 3, 2003 (the "Agreement"), among Comcast QVC, Inc. ("Comcast QVC"), a wholly-owned indirect subsidiary of Comcast Holdings Corporation ("Comcast Holdings"), Comcast, Liberty Media Corporation ("Liberty") and QVC, Inc. ("QVC"), among other things, completed the sale to Liberty of all shares of QVC common stock held by a number of direct wholly-owned subsidiaries of Comcast QVC for an aggregate amount of approximately $4 billion principal amount of Liberty's Floating Rate Senior Notes due 2006 (the "Liberty Notes"), approximately $1.35 billion in cash and approximately 218 million shares of Liberty Series A common stock. Pursuant to the Agreement, the shares of Liberty Series A common stock received by Comcast QVC were valued at $11.71 per share and represent approximately 7.5% of Liberty's common stock outstanding. The shares had a market value on the closing date of $10.73 per share, which was used for valuing such consideration in the accompanying unaudited pro forma condensed consolidated financial statements. Resales of the Liberty Notes and shares of Liberty Series A common stock received in the transaction have been registered with the Securities and Exchange Commission pursuant to the Agreement. On September 24, 2003, Comcast, through wholly-owned indirect subsidiaries of Comcast Holdings, sold an aggregate of $3.0 billion principal amount of the Liberty Notes for net proceeds of approximately $3.0 billion. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (b) PRO FORMA FINANCIAL INFORMATION Pursuant to paragraph (b) (1) of Item 7 of Form 8-K, Comcast Holdings is furnishing pro forma financial information in Exhibit 99.1 (c) EXHIBITS 10.1 Amended and Restated Stock Purchase Agreement dated as of June 30, 2003 among Comcast QVC, Inc., Comcast Corporation, Liberty Media Corporation, and QVC, Inc. (incorporated by reference to Exhibit 10.1 to Comcast Corporation's Current Report on Form 8-K filed on October 1, 2003). 99.1 Comcast Holdings Corporation unaudited pro forma condensed consolidated balance sheet at June 30, 2003 and unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2003 and the years ended December 31, 2002, 2001 and 2000. 1 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 thereunto duly authorized. COMCAST HOLDINGS CORPORATION ------------------------------------- /S/ LAWRENCE J. SALVA ------------------------------------- Lawrence J. Salva Senior Vice President and Controller (Principal Accounting Officer) Date: October 1, 2003 2 EX-99 3 ex99-1.txt EXHIBIT 99.1 EXHIBIT 99.1 COMCAST HOLDINGS CORPORATION UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The following Unaudited Pro Forma Condensed Consolidated Balance Sheet of Comcast Holdings Corporation ("Comcast Holdings") as of June 30, 2003 and Unaudited Pro Forma Condensed Consolidated Statements of Operations of Comcast Holdings for the six months ended June 30, 2003 and the years ended December 31, 2002, 2001 and 2000 give effect to the sale of Comcast Holdings' approximate 57% interest in QVC, Inc. ("QVC"). The Unaudited Pro Forma Condensed Consolidated Balance Sheet assumes the sale of QVC occurred on June 30, 2003 and the Unaudited Pro Forma Condensed Consolidated Statements of Operations assume the sale of QVC occurred on January 1, 2000, with all statements presented subject to the assumptions and adjustments as set forth in the accompanying notes to the unaudited pro forma condensed consolidated financial statements. On September 17, 2003, Comcast Corporation ("Comcast"), in accordance with the Amended and Restated Stock Purchase Agreement dated as of June 30, 2003 and executed on July 3, 2003 (the "Agreement"), among Comcast QVC, Inc. ("Comcast QVC"), a wholly-owned indirect subsidiary of Comcast Holdings, Comcast, Liberty Media Corporation ("Liberty") and QVC, among other things, completed the sale to Liberty of all shares of QVC common stock held by a number of direct wholly-owned subsidiaries of Comcast QVC for an aggregate amount of approximately $4 billion principal amount of Liberty's Floating Rate Senior Notes due 2006 (the "Liberty Notes"), approximately $1.35 billion in cash and approximately 218 million shares of Liberty Series A common stock. Pursuant to the Agreement, the shares of Liberty Series A common stock received by Comcast QVC were valued at $11.71 per share and represent approximately 7.5% of Liberty's common stock outstanding. The shares had a market value on the closing date of $10.73 per share, which was used for valuing such consideration in the accompanying unaudited pro forma condensed consolidated financial statements. Resales of the Liberty Notes and shares of Liberty Series A common stock received in the transaction have been registered with the Securities and Exchange Commission pursuant to the Agreement. On September 24, 2003, Comcast, through wholly-owned indirect subsidiaries of Comcast Holdings, sold an aggregate of $3.0 billion principal amount of the Liberty Notes for net proceeds of approximately $3.0 billion. Comcast Holdings will report QVC as a discontinued operation, in accordance with Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets." The pro forma adjustments included herein are based on available information and certain assumptions that management believes are reasonable and are described in the accompanying notes to the unaudited pro forma condensed consolidated financial statements. The Unaudited Pro Forma Condensed Consolidated Financial Statements do not necessarily represent what Comcast Holdings' financial position or results of operations would have been had the sale of QVC occurred on such dates or to project Comcast Holdings' financial position or results of operations at or for any future date or period. In the opinion of management, all adjustments necessary to present fairly the unaudited pro forma financial information have been made. The Unaudited Pro Forma Condensed Consolidated Financial Statements should be read in conjunction with the historical consolidated financial statements of Comcast Holdings. 1
COMCAST HOLDINGS CORPORATION UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET AT JUNE 30, 2003 (Dollars in millions) Historical Pro Forma Comcast Historical Pro Forma Comcast Holdings QVC (a) Adjustments Holdings ----------- ----------- ----------- ---------- ASSETS CURRENT ASSETS Cash and cash equivalents............................................ $1,298 ($508) $1,350(b) $2,140 Investments.......................................................... 179 (17) 162 Accounts receivable, net............................................. 959 (532) 427 Inventories, net..................................................... 506 (506) Deferred income taxes................................................ 137 (137) Due from affiliates.................................................. 317 317 Other current assets................................................. 176 (21) 155 ----------- ----------- ----------- ---------- Total current assets............................................. 3,572 (1,721) 1,350 3,201 ----------- ----------- ----------- ---------- NOTES RECEIVABLE FROM AFFILIATE......................................... 198 198 INVESTMENTS............................................................. 694 (4) 6,336(b)(d) 7,026 PROPERTY AND EQUIPMENT, net............................................. 6,902 (487) 6,415 FRANCHISE RIGHTS........................................................ 16,631 16,631 GOODWILL................................................................ 6,446 (835) 5,611 OTHER INTANGIBLE ASSETS, net............................................ 1,388 (170) 1,218 OTHER NONCURRENT ASSETS, net............................................ 362 (94) 268 ----------- ----------- ----------- ---------- $36,193 ($3,311) $7,686 $40,568 =========== =========== =========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable..................................................... 662 (399) $ 263 Accrued expenses and other current liabilities....................... 1,909 (392) 1,980(b) 3,497 Deferred income taxes................................................ 45 45 Current portion of long-term debt.................................... 378 378 ----------- ----------- ----------- ---------- Total current liabilities........................................ 2,994 (791) 1,980 4,183 ----------- ----------- ----------- ---------- LONG-TERM DEBT, less current portion.................................... 8,108 8,108 ----------- ----------- ----------- ---------- NOTES PAYABLE TO AFFILIATES............................................. 565 565 ----------- ----------- ----------- ---------- DEFERRED INCOME TAXES................................................... 7,016 (4) 841(b) 7,853 ----------- ----------- ----------- ---------- OTHER NONCURRENT LIABILITIES............................................ 1,107 (53) 1,054 ----------- ----------- ----------- ---------- MINORITY INTEREST....................................................... 1,267 (981) 286 ----------- ----------- ----------- ---------- STOCKHOLDERS' EQUITY.................................................... 15,136 (1,482) 4,865(b) 18,519 ----------- ----------- ----------- ---------- $36,193 ($3,311) $7,686 $40,568 =========== =========== =========== ========== See notes to unaudited pro forma condensed consolidated financial statements. 2
COMCAST HOLDINGS CORPORATION UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2003 (Dollars in millions) Historical Pro Forma Comcast Historical Pro Forma Comcast Holdings QVC (a) Adjustments Holdings ------------------------- ----------- --------- REVENUES Service revenues....................................................... $3,802 $ $10(c) $3,812 Net sales from electronic retailing.................................... 2,163 (2,163) ------------- ----------- ----------- --------- 5,965 (2,163) 10 3,812 ------------- ----------- ----------- --------- COSTS AND EXPENSES Operating (excluding depreciation)..................................... 1,637 (263) 10(c) 1,384 Cost of goods sold from electronic retailing (excluding depreciation).. 1,370 (1,370) Selling, general and administrative.................................... 1,079 (100) 979 Depreciation........................................................... 673 (40) 633 Amortization........................................................... 113 (25) 88 ------------- ----------- ----------- --------- 4,872 (1,798) 10 3,084 ------------- ----------- ----------- --------- OPERATING INCOME........................................................... 1,093 (365) 728 OTHER INCOME (EXPENSE) Interest expense....................................................... (342) 3 (339) Investment loss, net................................................... (6) (14) (20) Equity in net losses of affiliates..................................... (34) 4 (30) Other income (expense)................................................. 2 2 ------------- ----------- ----------- --------- (380) (7) (387) ------------- ----------- ----------- --------- INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY INTEREST.......................................................... 713 (372) 341 INCOME TAX EXPENSE......................................................... (269) 137 (132) ------------- ----------- ----------- --------- INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST................. 444 (235) 209 MINORITY INTEREST.......................................................... (126) 106 (20) ------------- ----------- ----------- --------- INCOME FROM CONTINUING OPERATIONS.......................................... $318 ($129) $ $189 ============= =========== =========== ========= See notes to unaudited pro forma condensed consolidated financial statements. 3
COMCAST HOLDINGS CORPORATION UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2002 (Dollars in millions) Historical Pro Forma Comcast Historical Pro Forma Comcast Holdings QVC (a) Adjustments Holdings ----------- ----------- ----------- --------- REVENUES Service revenues............................................................ $6,895 $ $23(c) $6,918 Net sales from electronic retailing......................................... 4,381 (4,381) ----------- ----------- ----------- --------- 11,276 (4,381) 23 6,918 ----------- ----------- ----------- --------- COSTS AND EXPENSES Operating (excluding depreciation).......................................... 3,015 (519) 20(c) 2,516 Cost of goods sold from electronic retailing (excluding depreciation)....... 2,793 (2,793) Selling, general and administrative......................................... 1,918 (211) 1,707 Depreciation................................................................ 1,425 (81) 1,344 Amortization................................................................ 213 (39) 3(c) 177 ----------- ----------- ----------- --------- 9,364 (3,643) 23 5,744 ----------- ----------- ----------- --------- OPERATING INCOME (LOSS)........................................................ 1,912 (738) 1,174 OTHER INCOME (EXPENSE) Interest expense............................................................ (725) 14 (711) Investment loss............................................................. (658) 92 (566) Equity in net losses of affiliates.......................................... (103) 8 (95) Other income................................................................ (4) (4) ----------- ----------- ----------- --------- (1,490) 114 (1,376) ----------- ----------- ----------- --------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY INTEREST........................................................... 422 (624) (202) INCOME TAX (EXPENSE) BENEFIT................................................... (246) 262 16 ----------- ----------- ----------- --------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST.............. 176 (362) (186) MINORITY INTEREST.............................................................. (196) 169 (27) ----------- ----------- ----------- --------- LOSS FROM CONTINUING OPERATIONS................................................ ($20) ($193) $ ($213) =========== =========== =========== ========= See notes to unaudited pro forma condensed consolidated financial statements. 4
COMCAST HOLDINGS CORPORATION UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2001 (Dollars in millions) Historical Pro Forma Comcast Historical Pro Forma Comcast Holdings QVC (a) Adjustments Holdings ----------- ----------- ----------- --------- REVENUES Service revenues............................................................ $5,919 $18(c) $5,937 Net sales from electronic retailing......................................... 3,917 (3,917) ----------- ----------- ----------- --------- 9,836 (3,917) 18 5,937 ----------- ----------- ----------- --------- COSTS AND EXPENSES Operating (excluding depreciation).......................................... 2,906 (478) 18(c) 2,446 Cost of goods sold from electronic retailing (excluding depreciation)....... 2,514 (2,514) Selling, general and administrative......................................... 1,746 (203) 1,543 Depreciation................................................................ 1,211 (81) 1,130 Amortization................................................................ 2,205 (62) 2,143 ----------- ----------- ----------- --------- 10,582 (3,338) 18 7,262 ----------- ----------- ----------- --------- OPERATING INCOME (LOSS)........................................................ (746) (579) (1,325) OTHER INCOME (EXPENSE) Interest expense............................................................ (734) 26 (708) Investment income........................................................... 1,062 (91) 971 Equity in net losses of affiliates.......................................... (29) 13 (16) Other income................................................................ 1,301 4 1,305 ----------- ----------- ----------- --------- 1,600 (48) 1,552 ----------- ----------- ----------- --------- INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES, MINORITY INTEREST AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE................ 854 (627) 227 INCOME TAX EXPENSE............................................................. (470) 254 (216) ----------- ----------- ----------- --------- INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE.................................. 384 (373) 11 MINORITY INTEREST.............................................................. (160) 153 (7) ----------- ----------- ----------- --------- INCOME FROM CONTINUING OPERATIONS BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE................................................. $224 ($220) $ $4 =========== =========== =========== ========= See notes to unaudited pro forma condensed consolidated financial statements. 5
COMCAST HOLDINGS CORPORATION UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000 (Dollars in millions) Historical Pro Forma Comcast Historical Pro Forma Comcast Holdings QVC (a) Adjustments Holdings ----------- ----------- ----------- --------- REVENUES Service revenues............................................................ $4,821 $15 (c) $4,836 Net sales from electronic retailing......................................... 3,536 (3,536) ----------- ----------- ----------- --------- 8,357 (3,536) 15 $4,836 ----------- ----------- ----------- --------- COSTS AND EXPENSES Operating (excluding depreciation).......................................... 2,210 (439) 15 (c) 1,786 Cost of goods sold from electronic retailing (excluding depreciation)....... 2,285 (2,285) Selling, general and administrative......................................... 1,404 (193) 1,211 Depreciation................................................................ 837 (58) 779 Amortization................................................................ 1,782 (68) 1,714 ----------- ----------- ----------- --------- 8,518 (3,043) 15 5,490 ----------- ----------- ----------- --------- OPERATING INCOME (LOSS)........................................................ (161) (493) (654) OTHER INCOME (EXPENSE) Interest expense............................................................ (728) 35 (693) Investment income........................................................... 984 (24) 960 Income related to indexed debt.............................................. 666 666 Equity in net losses of affiliates.......................................... (22) 5 (17) Other income................................................................ 2,826 2,826 ----------- ----------- ----------- --------- 3,726 16 3,742 ----------- ----------- ----------- --------- INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY INTEREST........................................................... 3,565 (477) 3,088 INCOME TAX EXPENSE............................................................. (1,429) 217 (1,212) ----------- ----------- ----------- --------- INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST..................... 2,136 (260) 1,876 MINORITY INTEREST.............................................................. (115) 112 (3) ----------- ----------- ----------- --------- INCOME FROM CONTINUING OPERATIONS.............................................. $2,021 ($148) $ $1,873 =========== =========== =========== ========= See notes to unaudited pro forma condensed consolidated financial statements. 6
COMCAST HOLDINGS CORPORATION NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (a) This column deducts the historical balances and results of operations of QVC to reflect the sale of QVC. (b) To reflect the consideration received from Liberty in the form of $1.350 billion in cash, approximately 218 million shares of Liberty's Series A common stock with a fair value of $2.336 billion at September 17, 2003 and $4.0 billion in three-year senior unsecured notes. The consideration received, net of $46 million in transaction costs, over Comcast Holdings' carrying value of the net assets of QVC is expected to result in an estimated gain of approximately $3.3 billion, net of tax. (c) Adjustment reflects the reversal of the elimination of intercompany transactions between Comcast Holdings and QVC. (d) On September 24, 2003, Comcast, through wholly-owned indirect subsidiaries of Comcast Holdings, sold an aggregate of $3.0 billion principal amount of the Liberty Notes for net proceeds of approximately $3.0 billion. The unaudited pro forma condensed consolidated balance sheet does not reflect the sale of such Liberty Notes. 7 -----END PRIVACY-ENHANCED MESSAGE-----