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Comcast Corporation (NASDAQ:CMCSA)

2012 Annual Meeting of Shareholders

May 31, 2012 9:00 am ET

Executives

David L. Cohen - Executive Vice President, Executive Vice President of Comcast Cable, Executive Vice President of Comcast Holdings and Director of Comcast Holding

Brian L. Roberts - Chairman, Chief Executive Officer, President and Director of Comcast Holdings Corporation

Arthur R. Block - Senior Vice President, Secretary and Director

David L. Cohen

Good morning, and welcome to Comcast 2012 Annual Meeting of Shareholders. My name is David L. Cohen, and I'm the Executive Vice President of Comcast Corporation, and I'll be serving as moderator for this meeting. With me on the stage are Brian L. Roberts, our Chairman and Chief Executive Officer; and Arthur R. Block, Senior Vice President and General Counsel and Secretary. Mr. Roberts will act as chairman of the meeting, and Mr. Block will serve as secretary.

In fairness to all shareholders in attendance and in the interest of an orderly meeting, we've adopted some rules of conduct, which have been distributed in advance of the meeting. All of you should have copies we have posted outside, as well. All shareholders will be given an opportunity to ask questions and make comments following the introduction of our management and shareholder proposals, and we plan on completing the meeting by 11:00 a.m.

So at this time, it's my pleasure to introduce our Chairman and CEO, Mr. Brian L. Roberts.

Brian L. Roberts

Thank you, David. Will the meeting please come to order. We have all -- many members of our Board of Directors here in the front row and members of senior management, which are available as well for the meeting. I'd also like to introduce from Deloitte & Touche LLP, our independent auditors, Mike Teeda [ph], lead client service partner for Comcast, and John Malvizi [ph] and Aaron Scanlon [ph] of NBCUniversal audit partners. Can you identify yourselves guys? There you are. Thank you.

Okay, let me turn it over to Mr. Block.

Arthur R. Block

Thank you. This meeting has been called pursuant to notice dated April 20, 2012, sent to all shareholders of record as of the close of business on March 22, 2012. Mr. James Raitt, President of American Election Services has been appointed as judge of election to conduct the votes of the meeting and in the adjournment or postponement and has delivered to me his oath of office. The judge of election has advised us that based on proxies presented prior to the meeting, a quorum exists for each matter at the meeting.

At the meeting are copies of the notice of Internet availability of proxy materials, the notice of meeting, proxy statement, form of proxy, affidavit of mailing and true and complete list of the shareholders of record of the shares of Class A common stock and Class B common stock are open to examination during this meeting.

I now declare this meeting duly convened, properly organized and confident to transact business. At this meeting, we may make forward-looking statements, which are subject to certain risks and uncertainties. Please see our SEC filings for more information on the risks that could cause actual or -- results to differ materially from those forward-looking statements.

Brian L. Roberts

Let's proceed to the business of the meeting. There will be an opportunity to discuss the 4 company proposals and the 4 shareholder proposals after all the proposals have been presented. The first item of business is the 4 company proposals. The Board of Directors has recommended that shareholders vote in favor of these proposals. Each of these proposals and the reasons for the board's recommendations are set forth in the proxy statement. The 4 company proposals are the election of directors, ratification of Deloitte & Touche and the approval of 2 Employee Stock Purchase Plans. Is there a motion to approve these proposals?

[Voting]

Thank you.

Unknown Attendee

My is Julie Tassel [ph] [indiscernible] shareholder. I nominate for election as directors the nominees set forth in the proxy statement, and we move that the appointment of Deloitte & Touche be ratified and that the Comcast Corporation 2002 Employee Stock Purchase Plan and the Comcast-NBCUniversal 2011 Employee Stock Purchase Plan be approved.

Brian L. Roberts

The next 4 items of business are shareholder proposals. These proposals and statements for and against our adoption are set forth in the proxy statement. The board has recommended that shareholders vote against each of these proposals.

The first shareholder proposal request that the board take steps that may be necessary to provide for cumulative voting in the election of directors. Do we have a motion from Evelyn Y. Davis or her duly authorized representative to approve the proposal?

David L. Cohen

Keep the microphone live, please.

Unknown Attendee

[indiscernible]

Brian L. Roberts

The second shareholder proposal request that the board take the steps that may be necessary to require that the Chairman of the Board be an independent Director. Do we have a motion from the AFL-CIO Reserve Fund or its duly authorized representative to approve the proposal?

Unknown Attendee

[indiscernible]

Brian L. Roberts

The third shareholder proposal request that the board to take the steps that may be necessary to adopt the share retention policy for senior executives. Do we have a motion for the Board of Trustees -- from the Board of Trustees of the International Brotherhood of Electrical Workers Pension Benefit Fund or its duly authorized representative to approve the proposal?

David L. Cohen

Sorry, wait one second. Just make sure we keep the microphone live.

Unknown Attendee

My name is [indiscernible], I represent the IBEW Pension Benefit Fund [indiscernible] submitted a proposal for the [indiscernible] to adopt a share retention policy for senior executives. We believe that this proposal would align [indiscernible] stockholders. Requiring senior executives to hold a significant portion of shares obtained through compensation plans as long as they are members of senior management would focus them on the company's long-term success and better align their interests with those of the company's shareholders. In the context of the ongoing financial crisis, we believe it is imperative that companies reshape their compensation policies and practices to promote long-term, sustainable value creation. Therefore, we urge you to vote in support of this proposal. Thank you.

Brian L. Roberts

The final order of business is a shareholder proposal requesting the board to require that poison pills be subject to a shareholder vote. Do we have a motion from Kenneth Steiner or his duly authorized representative to approve the proposal?

Unknown Attendee

My name is Sheldon Baker [ph]. I'm from Philadelphia, Pennsylvania, and I'm here on behalf of Kenneth Steiner to make a proposal on to make Poison Pills subject to a shareholder vote.

Brian L. Roberts

Thank you. Let me just go back to the second shareholder. Do we have a motion from the AFL-CIO Reserve Fund? Give them one more chance. Okay.

At this time -- or is there any discussion on the 4 company proposals or the 4 shareholder proposals, the floor is open to questions directly related to Comcast business.

David L. Cohen

If we do, we will have the microphones stationed in here so if people want to line up. Is there one on this side as well? Certainly, yes, there's one on each side, so people feel free to line up in the aisle. And could the people holding the microphone just raise your hands so people know where they can line up. There's one back here.

Question-and-Answer Session

Justin Danhof

[Technical Difficulty]

Individuals at their company. Mr. Roberts, why is this happening? Editorializing need not contain libel, and NBCUniversal is not a middle school operation. Standard fact checking should be in place at all times. Finally, Mr. Roberts, MSNBC personnel have a habit of making outlandish remarks and then, sometimes, withdrawing them. For example, Chris Matthews said Republican primary voters are comparable to Grand Wizards of the Ku Klux Klan, then claimed he didn't mean to say it. Ed Schultz called Laura Ingraham a slut, then he apologized. But he has also claimed that Republicans want to see sick people die so they can make money off their corpses; that conservative commentators want to see Obama shot. And he said of former Vice President Dick Cheney's heart, "We ought to rip it out, kick it around and stuff it back in him." These would be shocking things for a drunk to say at a bar, Mr. Roberts, but they are being said by supposed professional journalists on your air and on your network. Why? So my questions are, Mr. Roberts, are MSNBC personnel unable to govern their own speech or is all this outlandish talk just a formal company tactic designed to boost your ratings? And what, if anything, does Comcast do to prevent libel exposure? Finally, would you pledge to personally investigate how a think-tank such as ours and multiple members of Congress could be said to have committed multiple felonies without any evidence, indictments, plea agreements or convictions? And I formally request an on-air correction and an apology for the lies told about the National Center for Public Policy Research on the April 24 Rachel Maddow broadcast.

Brian L. Roberts

Thank you. I'm not familiar with the April 24 broadcast, but I will tell you that we'll look into it and we'll get back to you. Thank you for your comments.

David L. Cohen

Yes. Stay on this side. And I will come to this side so -- all right.

Nathan Kleinman

Yes, Mr. Chairman, my name is Nate Kleinman [ph], I'm a shareholder. And my question is, will the board continue its support of the American Legislative Exchange Council or ALEC, which is an organization that advocates for voter suppression, for the weakening of worker rights and for making it easier for corporations to pollute. I'm here with my friend Harrison [ph], who's a public school student in Philadelphia. And as a shareholder, I find it troubling that this company doesn't pay its fair share of taxes when the schools in Philadelphia are struggling.

Brian L. Roberts

The company had a tax rate last year of 38%, I believe. And on ALEC, we support a number of organizations, one who are focused on telecom issues, and we are in agreement on the research or work that they're doing. But I will tell you that we're very proud of the company in the last year. And later, I'll give a report on how we did. But I think you'll -- on behalf of the shareholders and the employees, I think we had a terrific 2011, off to a good start in 2012. And we're very, very deeply involved with trying to make our products with Internet Essentials and other offerings that we have, working with educational institutions. So there's a lot to talk about there, but I understand and appreciate your point. Thank you for your input.

Unknown Shareholder

Is it possible to hear from the candidates, the board, the directors or Board of Directors whether they will continue to support ALEC?

Brian L. Roberts

I look forward [indiscernible] your comments. I'll be chairing the meeting here and answering the questions. Thank you.

David L. Cohen

Next. We'll stay on this side. It's a longer line.

Unknown Attendee

My name is William G. French [ph]. I'm from Fairfax, Virginia, and I'm a trustee for a fund that owns common Comcast shares. I was initially pleased to learn of Comcast's intention to purchase NBC from General Electric. But it's become apparent that NBC's brand and credibility had been seriously damaged during the latter years of GE's ownership. The acquisition of NBC by Comcast seemed to be an ideal fit. But sadly, 1.5 years since the merger was finalized, nothing has changed. NBC -- MSNBC's on-air personalities are a little more than a collection of hatemongers and smear merchants, lacking the intellectual capacity to enter into serious discussions of the many great issues facing our nation. Instead, they spew out a steady stream of smears, name-calling and personal attacks filled with half-truths, distortions and outright lies in order to destroy those whose only fault is having a different political perspective. Chris Matthews said to former Republican Chairman Michael Steele that he was hanging around with "the Grand Wizard crowd." And in the past, he's also called Republicans, Nazis. However, nothing could compare to the comment by Schultz, that former Vice President Cheney should die. Now NBC has added Al Sharpton, a proven liar, to the array of journalists. No one can forget the way he perpetuated the Tawana Brawley hoax. I find it difficult to conceive of anything Sharpton could possibly add to MSNBC that would strengthen its brand or restore its image. But I'm disturbed as a shareholder that he's allowed to use shareholder-financed airtime to advance his own device of personal political agenda. Quite honestly, in short, I think Comcast has thrown shareholders under the bus. The same people who managed and mismanaged MSNBC's brand and blackened its image under GE's ownership are still in charge with the same results and immigrating an utter lack of the integrity in the newsroom. It's time for a change, and it's time for this board to stand up for the shareholders and stop placating the misguided ideologues who continue to mismanage MSNBC. When are you going to help restore professionalism, honesty and fair journalism to MSNBC so that the shareholders can benefit by increased viewership and increased ad revenue? That's going to -- what's going to benefit the shareholders, not this anemic rating that we have now that nobody watches at and most people laugh at?

Brian L. Roberts

I thank you for your comments. As you can tell, there are some people watching, but thank you. We hear your point of view. Thank you.

David L. Cohen

Let me be fair, move to this side for the next question.

Unknown Attendee

Mr. Roberts, my name is Kevin Dealis [ph]. I'm a service technician from the Carol Stream office in Chicago. I stand before you today not as an adversary, but as a supporter, trying to reach this company on higher ground. I want to be very clear, as a shareholder, I do understand the numbers game of the business. I know we have the best product and appreciate the moves our company has made to compete with our competitors, but there also has to be a human side element to the mix. Mr. Roberts, I'm here to tell you that is what we are lacking in the Greater Chicago Region market. The leadership in the West is negligible at best. As a worker, Mr. Roberts, we are under attack from your management team. The senior leadership in the GCR has attempted to exterminate us, and I use that term literally because we were referred to by our HR people as cockroaches. This is a value that were looked upon by our leadership. I'm sure you have or you will hear other examples today of items that need to be addressed. We are under attack when we do a good job, saying, we can do better. We're told that we need good numbers, and we need them and in order to reap the rewards, which we never see. We're named the System of the Year, and there's no doubt that we all had a part to play in it, but no reward. I have personally been a target of these attacks. As I stated before, Mr. Roberts, I want to work with you. I love my job. I do want us to succeed, but not just by our numbers. I want my peers to view this as a career, not as another job to add to a resume. I want our future workers to desire to work for the best. I want our competitors to fear us and be intimidated by us. I don't want our leadership trying to do the same to its own workers. I have much respect for you in the business end, as well as your father. And I've not yet completed his book but I've been reading, and it's a very interesting read. My hope is to be accepted into the Comcast family and move our company forward. I don't want us moving backwards. I know the issues that have been and will be brought up today will be handled in a swift, direct way. These issues need your involvement right away. Brian, it's the time to do the right thing. It's time to restore justice to our name for all of Comcast. You and me, we've got to start bringing back respect to the Greater Chicago Region, as well as the rest of our company, because it is -- we're moving in a direction that's not good for our company.

Brian L. Roberts

Thank you.

David L. Cohen

Over here.

Unknown Attendee

My name is Jim Beach [ph]. I'm from Philadelphia, Pennsylvania. I'm a proxy shareholder. And my question concerns the potential relocation of Comcast to the state of Delaware and whether or not that is for tax purposes because of the Delaware loophole.

Brian L. Roberts

What was the last part? I couldn't hear you.

David L. Cohen

I'll give a short answer. We're not relocating to the state of Delaware, and we are -- and by the way, we are a Pennsylvania corporation incorporated in the state of Pennsylvania. Thank you very much. And we pay Pennsylvania taxes.

Let's go to this side, the right side.

Unknown Attendee

Mr. Roberts, my name is Rolanda King [ph]. I'm [indiscernible] in the Philadelphia area, and I would like to see that we can agree to disagree. You and I both know that the city of Philadelphia is a great city. What made it great all these years is that everyone is sticking together and paying their fair share. The fiscal crisis in the city is real as well. But if corporations like Comcast pay their taxes instead of buying new jets, perks, we would be on our way to solving some of the Philadelphia current problems. Can you give me a specific answer in how we will go about moving into the next level so that our schools and communities are not desecrated by corporate greed?

Brian L. Roberts

Thank you for your comments.

David L. Cohen

Next question on the left, please. Next question on the left, please.

Unknown Attendee

My name is Marge Kreuger from the Communication Workers of America. And as you know, we represent your employees in Pittsburgh. But today, I'm here representing the AFL-CIO, a federation of 56 unions representing more than 12 million members. The union-sponsored plans hold approximately $480 billion in assets, many of whom are Comcast shareholders. I hereby introduce the AFL-CIO shareholder proposal, which you introduced earlier. Our proposal recommends the policy to require that an independent director, who has not previously served as an Executive Officer of the company, be the Chairman of the Board. We do not believe that appointing an independent director as the presiding director as Comcast has done is enough. The Board of Directors is responsible for protecting the long-term interests of shareholders by providing independent oversight of management. The CEO -- I'm sorry, the Chairman runs the board, and the CEO reports to the board. But at our company, the CEO is also the Chairman. How can the CEO be his own boss? What's more, Comcast 2009 articles of incorporation personally name Brian Roberts as Chairman and CEO for so long as he wants to serve. This unique provision, combined with our company's dual class stock that gives him a disproportionate share of the votes, reduces management's accountability to the shareholders. We believe that an independent Chairman would strengthen the independent leadership of the board and enhance management's accountability to the shareholders. Isn't it time to appoint an independent Chairman so our CEO can focus his attention on improving the total return to the shareholders?

Brian L. Roberts

Thank you. The reasons. As you know, we've put in our proxy the reasons that we disagree with that, but we respect your proposal. Thank you for your comments.

David L. Cohen

Let's go to the right-hand side. Next question, please.

Unknown Shareholder

Good morning, Mr. Roberts. My Name is Roy Coolie [ph], a service technician from Carol Stream office out of Chicago. I come before you today to talk about a couple of things that concern me as a worker and as a shareholder. For years, I've been hearing nothing but at Comcast, we are a family. We all need to dream big. Well, I have to tell you today that as a son of this company, I feel nothing more than a number. We are supposed to be able to communicate with one another. After all, we are a telecommunications company. For the sense, trying to talk to someone around here is very difficult to do because not all does your voice not count, it gets swept under the rug. I'm sure growing up, your dad, Ralph, was always there for you and I need you here for me. I want to be able to provide to my loving family just as much as you do for yours. You have no idea what my brothers and sisters have to go through just to try to make ends meet. Personally, I'm lucky if I get to see my wife and kids because I devote so much time to this company. 1:00 in the morning, 3:00 in the morning, I'm always on call. I've never see my family. For example, this may be -- for example, may I say, we bust our humps last year, and we got nothing for all the hard work that we did, nothing. Bonuses, this year, nothing, and that's not fair. I'm tired of it, still tired of it. We come from the System of the Year. We have your union move you over here or whatever is tied to it to say, "Hey, yes, we've got those top guys at Chicago from my office." But yet, we're not treated the same. I don't think it's right. We also have new products and services such as this new alarm system and my manager would not sent anyone in my office to trying it. That concerns me as a shareholder because not only are we losing money, but the net wireless is getting worse and worse. With all the things that this guy does, I feel, if it doesn't stop soon, we will not only suffer as shareholders but as workers. I want to be able to provide excellent customer service to subscribers. Comcast makes it very difficult to achieve this. Lastly, I have here in my hands awards and letters from customers thanking me, other technicians, and giving us praises. The last time I was here, I was in [indiscernible], employees received these types of awards are awarded dinners. Well, we don't want the dinner. All I ask is for 30 minutes of your time after this meeting to address some of these issues, which we've all seen. I don't want to hear from him. I want hear from you, Brian. I've been upfront in this company. I only think its right. You give me 30 minutes of your time. I give you 80 hours of my time almost every week just to provide for my family and not only for these shareholders. And it should concern them that we're not making money because you have the manager that won't allow us to do and provide new products or services for our customers. It's not right.

Brian L. Roberts

Let me say, thank you for coming. I appreciate what you do for the company and your colleague before you. And that we have, as I understand it, our labor agreement is up in the last few weeks. And part of why we want to have a discussion is the new contract. And Mr. Smit, who's the head of the cable company, is here, as well as Bill Strahan, who you referenced. We are available to try to have a conversation. But at the same time, I just want to thank you for what you do for the company even if we don't always agree. We had a great year. It was System of the Year and we're making progress, and we'd like to continue that conversation.

David L. Cohen

Thank you. Let's go to the left-hand side. Next comment.

Unknown Shareholder

Mr. Roberts, my name is Harry Gathers [ph], I am a shareholder. Hundreds of school employees are losing their jobs. In Philadelphia now, students are facing a bleaker future [indiscernible] because corporations refuse to pay their fair share in the taxes. I pay my taxes. Will Comcast pay their own, their fair share?

Brian L. Roberts

It's hard to make generalizations. Let me -- Mr. Cohen will tell you what we do with some of our taxes. All corporations are different. We've been growing, adding jobs, increasing our tax base and paying more taxes. Go ahead.

David L. Cohen

So let me be directly responsive. Comcast, there are a lot of companies, as Mr. Roberts has said, you can't just apply the same label that top corporations dodge taxes. Comcast, as Mr. Roberts said, in our federal tax -- our effective federal tax rate last year was between 37% and 38%.

Unknown Attendee

[indiscernible]

David L. Cohen

Just let me answer the question. Between 37% and 38%, so we are not one of those companies that pays 4%, 0% of our taxes. The federal corporate tax rate is 35%, so our effective rate was actually higher than the federal corporate tax rate. In terms of -- we are one of the largest corporate taxpayers in the Commonwealth of Pennsylvania and at in our all local communities. If you count all taxes and fees paid in the Commonwealth of Pennsylvania and to local governments in Pennsylvania, Comcast paid over $300 million in taxes and fees last year in Pennsylvania.

Unknown Attendee

[indiscernible]

David L. Cohen

I agree. I don't know an answer to that number. But I'd tell you, we pay our fair share of taxes in Pennsylvania and in local communities in Pennsylvania.

Let me go back to the right-hand side. Next question.

Unknown Attendee

Mr. Roberts, My name is Jacob [indiscernible]. I'm service tech out of the Carol -- out of Greater Chicago market. I would like to, first off, congratulate you on a successful year of 2011. The merger of NBCUniversal was a big success. The stock shares have rebounded well. And all the many achievements we, as a company, have achieved were overwhelming. I'm sure under your leadership, this company will continue to grow and be one of the most successful companies ever. We would, however, like to take this opportunity to utilize the open door policy and address some serious concerns of ours as fellow workers and shareholders. We work from the Carol Stream that has legal offices in the Greater Chicago market and are very concerned about the direction this company is heading. We have all worked hard, gave up times with our family and went over and above for this company because we are proud workers and take pride in the fact we work for the best, as it shows, by being part of the team in the Greater Chicago market which was named System of the Year. However, as of late, we, as workers, while trying to perform our duties at work, are constantly being negatively challenged by senior leadership. We all come to work with the expectation that we will be able to deliver the very best product to our customers without fear of our jobs or intimidation from upper management. Our first concern is with Technical Operations Manager, Terry Muroch [ph]. Mr. Muroch has instilled fear and intimidation in his supervisors that they are afraid to make decisions or do their job functions. These supervisors have been threatened to the point that they resulted in unnecessary discipline and termination of employees or they are out. Mr. Muroch is actually accused above any rules and is untouchable. Needless to say, he has created a very hostile work environment. Our next concern is human resource team and the so-called Comcast business lines. This research had been utilized and we have taken our concerns to past and present HR representatives and utilized the Comcast business lines. Several employees have attempted to approach the conduct avenues for issues on very -- resolved the same way, which has no result and no response at all. One employee approached HR and Comcast business lines with a complaint of inappropriate sexual comments made by Mr. Muroch with witness to the incident. The investigation consisted of the witness not being interviewed and the comments cleared unfound. We know now Comcast does not listen, and we need to keep our concerns to ourselves or be disciplined, even being told by the Comcast business representatives that we cannot touch this issue. We do not believe this is how Comcast business lines should be or is advertised on our team Comcast and shop posters. That will take us to our next to Technology Operations Director and Area Vice President, Joe Browning [ph] and Brian Mark [ph]. Concerns have taken with these gentlemen, and we are told that it is what it is. These individuals, when they have stood face-to-face with us, which is not very often, they lie to us again and again, no result and no response. This brings us to our last issue, the Comcast bargaining team, consisting of members we have already mentioned and Network Operation Manager, Rich Taylor [ph]. There have been several sessions of bargaining with no progress at all and have been told by Mr. Taylor [ph] that there will be no changes to the current procedures, only to walk away from the table to make a phone call and change what he just told the lawyers he will not be changed. It is this behavior that makes us feel we have no resource other than to bring these concerns to you. We have lost all confidence in the senior leadership management team that is in place in the West area of the Greater Chicago market, from top executives down to the lowest rank supervisor. As employees, shareholders and owners of this company, we know that this type of management is not only bad for morale for the workers, but the lack of confidence in senior leadership will severely affect the business in the long run. We would request the complete and joint investigation and welcome you personally to our facilities to speak with us and fix the problem in Chicago and work with us to make all the offices a better place to work. We believe in our company. And I have signatures from everybody in our offices on here. Who could I give this to?

Brian L. Roberts

Bill, I would like have a conversation after the meeting, if you could, with Mr. Strahan and we'll cool all that because that's -- thank you.

David L. Cohen

Thank you. Let's come back to the left side.

Unknown Attendee

Mr. Roberts, my name is Alan Angel [ph]. I've been employed for the last 3 years as a service technician in the city of Chicago as well. I work in the city, the Cortland facility. As we've already mentioned, we were recently named System of the Year. Certainly, the city's efforts played a major role in achieving this honor. Mr. Roberts, I'm proud to report to you that I was recently ranked the #1 technician in the city based on year-to-date metrics. But what I'm most proud of is that 5 out of the 10 top technicians were from our shop at Cortland. Simple math based on Comcast's own percentages tells us that the union shops in the GCR are carrying the load, that we love our city, but working in Chicago comes with a price. Chicago leads the nation in homicides. And each day in the field, I pray for myself, I pray for my brothers and my sisters. They share this work with me. I pray that God protects us from gun violence and grants us safe return home back to our families. We've worked with the threat of violence over the past year, and there's been nearly one technician per month robbed at gunpoint. One worker was robbed twice. Comcast's only response to these events when they happen has been to remove the tech from the area, put another tech there the same day, an hour or 2 later, without any sort of caution to threat of violence. Furthermore, the company has no consideration for the loss of personal property when this happens because a lot of times workers are losing their phones, their own personal phones, whatever is in their truck. I mean, if someone has got a gun up to your head, what are you going to do, right? Today, I speak with a troubled heart because even though these union shops are the most productive, we're the most discriminated against with respect to wages and benefits. This past January, my union, we were forced arbitrate clear contract language that says, the employees of our bargaining unit shall be offered the same Chicago region-wide and Chicago area-wide incentive programs under the same terms and conditions as a non-represented employee. What the language means so crystal clear, why would your company choose to exclude union shops from participating in these incentive programs? The plan itself is based on individual and system performance. Why, Mr. Roberts, are we discriminated against? Do you, sir, think that it's right that we place our lives on the line for you everyday in Chicago and not receive some sort of benefit for doing so? It's one thing to be robbed by thugs, but it's hurtful and it's shameful, Mr. Roberts, to be robbed by your employer, from you who make billions. Again, sir, I ask, is this right? Can I ask your commitment to correct this egregious moral sin against your workers, my brothers and sisters in Chicago region that has performed so well for you this past year? Are you willing to commit to that?

Brian L. Roberts

I would like you to also be with Mr. Strahan, if we could, and understand, first of all, the workers' safety and thank you for what you do. And we want to make sure that it's paramount that we understand what is and isn't happening. And for all -- again, for the folks from Chicago that are here, when the contract is up, we are here. We want to listen to what you have to say, and we'll try to make some extra time at the meeting, so thank you.

David L. Cohen

Let's stay on the left side. Next.

Unknown Attendee

Mr. Roberts, My name Robert Kugitz [ph], and I've been employed at Cortland facility as a union service technician for the past 2.5 years. I, too, stand proud to say that my productivity has been recognized as being one of the top produces for your company in the Greater Chicago Region. Each morning, I'm the first service tech to report for work and often, I'm one of the last to leave. Why? It's simple. I enjoy my life and even more, I enjoy satisfying our customers. Mr. Roberts, I believe that you would have a greater appreciation for me, not only as a worker, but as a human being if you would ride out with us in Chicago for just one hour. Frankly, the wage I'm being paid, oftentimes, I ask myself if I'm insane, having my life threatened by gang violence, the ringing of gunshots, praying that I get through not only one job with my day, with my life. Respectfully, I must say that the wages that I'm paid and the company's refusal to include us in our region-wide bonus program is disrespectful shown to me, not only me, but my brothers and sisters simply because we're union workers. I believe this is wrong to mistreat your workers, Mr. Roberts. We are even denied the opportunity to learn new product, specifically the alarm system technology, and local management blames this on the union. I ask myself, why is that? So in closing, I leave you with 2 simple requests. Will you remove the penalties against union workers and pay out the bonus money that we have earned and that is in our contract? I also ask, would you allow us, union workers, to be trained in other new products? And I give you a guarantee, Mr. Roberts. We guarantee to deliver professional quality service over any contract to our customers.

Brian L. Roberts

Thank you.

David L. Cohen

Go to the right-hand side, please.

Unknown Shareholder

Yes, Good morning. My name is Jim Whitehead [ph]. I'm a Philadelphia resident, and I am a Comcast stockholder. It is very disturbing, as a stockholder, to hear what's going on to these workers in Chicago. I think it's unconscionable, and I applaud your response to deal with it immediately because it ultimately does affect the bottom line. The other reason I'm here today to speak is, as a shareholder, I am an employee of the school District of Philadelphia, and I received the layoff notice for all 2,700 of our workers, blue-collar workers with the school district. My question to you today is concerns the -- your taxes that you pay and the Delaware loophole. Is it true, is it a fact that Comcast does take advantage of the Delaware loophole so that they don't have to pay the full rate of Pennsylvania State corporate taxes? The other question is, if that is the case, are we going to continue to do this when everyone knows at this time in the state of Pennsylvania, Governor Corbett has cut education funding by 1/3, which amounts to $1 billion, which is also unconscionable because it hamstrings our children? It also hamstrings the workers that buy Comcast products. If they don't have a job, they're not going to be able to afford Comcast cable, so that's going to affect our bottom line. And if it is a fact, what are we going to do about it? Are we going to stop this practice and pay our fair share of taxes so that the tax base can come up and we could save the school system in Pennsylvania?

Brian L. Roberts

First of all, sorry about your position with the school, position that you had that you got laid off. Obviously, we're disappointed with what's happening in the economy at some level. Mr. Cohen, I think, gave a pretty complete answer on our taxes. We're not like some of the companies you've read about. At the same time, it's important to us to see Pennsylvania vibrant and healthy as we're headquartered here. Many times, we've been encouraged to move out of Philadelphia or move out of Pennsylvania, whether it's in mergers or by other things. And as you know, we have made tremendous investment in the city, and we want to see it vibrant and growing as you do. Thank you for your comments, though.

David L. Cohen

Let's go to the left...

Unknown Shareholder

I'm sorry, you didn't answer my question. Do you take advantage of the Delaware loophole?

Brian L. Roberts

Mr. Cohen?

David L. Cohen

The answer is not to any significant extent, and we are, as I've said before, an extremely substantial taxpayer in the city of Philadelphia and in the Commonwealth of Pennsylvania. We pay more than our fair share.

Unknown Shareholder

It's either yes or no. Do you take advantage of the Delaware loophole or not?

David L. Cohen

I said, through an extremely limited extent. It does not, by the way, affect the taxes.

Next question on the left-hand side, please.

Unknown Shareholder

My name is Milton Smith [ph] from Burlington, New Jersey. I'm a shareholder, and I'm glad I'm not the only the speaker this year at the Annual Meeting. When I came in today, I was hoping that we'll be getting a copy of Mr. Roberts' book about, the history of Comcast, but I digress. My question is in regards to the fees that are paid to the auditor. Since the merger with NBCUniversal, I've noted that the fees paid to the auditor have increased tremendously in the past year. It's more than doubled. In the forthcoming years, is this current rate that we're paying the auditors is going to remain the same or is it going to start leveling down since that the merger has been being completed?

David L. Cohen

Brief answer is, I think the size of the auditing fees was larger in 2011 for 2 reasons. First of all, the addition of NBCUniversal auditing, so we have a new company, essentially, that is being audited. I think we can expect that the auditing fees will be higher on an ongoing basis, run-rate basis because they're now covering 2 companies as opposed to one company. On the other hand, there were also higher fees because of the transaction itself from the transition activities, and those fees should dissipate. And so you should see a reduction but probably not to the level that you saw historically.

Next question, right-hand side, sorry.

Unknown Shareholder

Yes, my name is Frank Stein [ph]. I'm a shareholder of Comcast. I also I work for the Philadelphia school board. I'm a general cleaner for the Philadelphia school board. And my question is, you have 241 addresses in Delaware and 10 here. Why do you just keep lying to us about what's going on with the loophole?

Brian L. Roberts

I think we've answered the question.

David L. Cohen

I've think we've answered the question. I'm in the left-hand side.

Unknown Shareholder

They can't answer the damn question.

David L. Cohen

Left-hand side, please. Left-hand side, next question please.

Unknown Shareholder

My name is Luz Valdez [ph]. I'm a shareholder, and I'm here to fight for Philly justice and dignity. As lifelong residents of South Philadelphia, I'm not at all pleased with the fact that my city is crumbling due to corporate greed. I think that it's wrong that you call yourself a Philadelphia company, and you have over 250 corporate subsidies in Delaware so you can avoid paying taxes. I'm a Philadelphian who pays my share of taxes. Why don't you?

Brian L. Roberts

Thank you for your question.

David L. Cohen

Right-hand side, please. Next question. The question has been answered. Right-hand side, next question please.

Unknown Attendee

My name is Charlie Murphy [ph], and I live in Upper Darby. My inquiries this morning is around the hiring of Ms. Baker to the lobbyist position. They're only a few inquiries. I would certainly appreciate your responses to them. I believe that the shareholders certainly deserve it. First, is there an investigation tied to her because she was involved with the approval of the NBC merger? And that's obviously an easy yes or no question.

Brian L. Roberts

[indiscernible] ask your questions, we'd be happy to respond.

Unknown Attendee

Is there an investigation tied to -- since she's been hired due to here being involved with the SEC and the merger with NBC?

David L. Cohen

That's your only question?

Unknown Attendee

No. The other one is, what are they looking into? Had there been any subpoenas and who has been subpoenaed and what do they look for? And lastly, is Congress involved? Thank you.

David L. Cohen

Okay. Brief answer to the question is there was nothing inappropriate done in the hiring of Meridith Attwell Baker. Any discussions with here began after the approval of the NBCUniversal transaction. There had been numerous inquiries, no subpoenas. All inquiries have been responded to. And as far as we are aware, no one believes that anything inappropriate was done in her hiring.

Unknown Attendee

And the last one regarding Congress, sir?

David L. Cohen

There were -- included in the inquiries were inquiries from a congressional committee, which were responded to and deemed acceptable by the committee.

Question on the left.

Unknown Attendee

My name is Marvin Robertson [ph]. I'm from West Philadelphia, and also I'm going to fight for Philly's number. For a whole year, we've been trying to get word out from executive board members about issues about your tax loophole. But I'm going to say this to you, Mr. Roberts, you sit up there and you look all good and whatnot. And when you said, you all did a good job in the last 2 years, you're right. You all made $17 billion in 3 years, and you only paid 23% on taxes. Do you really think that's fair to us city workers and tax people who lives in Philadelphia?

Brian L. Roberts

I appreciate your point. I think we've answered and discussed the taxes, but thank you for your comment.

David L. Cohen

Come back to the right-hand side. Next comment please.

Unknown Attendee

This is Brian Christ [ph] from Eastmont area. And my question also concerns the hiring of Mrs. Baker, and I just wanted some clarification. So all investigations with regard to her hiring have been closed. Is that correct?

David L. Cohen

I think I've responded to the question. If you have anything else, let me know.

Unknown Attendee

So you'd also -- I'm asking you a direct question if all the investigations have been closed?

David L. Cohen

Any other question?

Unknown Attendee

Well, you have answered that question. I have, I think, 5 more.

David L. Cohen

We'll come to the left-hand side. Next question.

Unknown Shareholder

My name is Mary Ann Hoenstein [ph]. I'm a resident of Philadelphia and a shareholder. I wanted to return to question that you addressed but just very briefly before, which is about the American Legislative Exchange Council, the big lobbying group commonly known as ALEC. You said that you are a part of ALEC because of their position on telecom issues and you have an interest in those issues. But I think it would really behoove the company to look at many of the other positions that ALEC takes. And when we're looking at the crisis in education in Pennsylvania, ALEC is a proponent of vouchers, and not just vouchers for poor students, but vouchers for a student of any level of income who wants to leave a public school and go to a private school. And I don't know if that is a position that you also support. ALEC is also a proponent of cyber charters, which are over the Internet schools, public schools for children that receive -- and ALEC's position is that they should receive the same amount per student as does a brick-and-mortar school without providing transportation, without providing facilities, without providing sports, without providing lunch, without providing any of the other things that a regular public school has to provide. I don't know if you support that position. ALEC is also a strong proponent of the voter ID law that was recently passed in Pennsylvania that is going to disenfranchise thousands of voters in Philadelphia, your hometown. Right? And so I don't know if that's a position that you support as well, and I think it's important to look at all of those issues when you are part of this lobbying group. And I would just say, would you consider -- Amazon is no longer part of ALEC McDonald's is no longer a part of ALEC. And I would really strongly urge you to think about and consider pulling yourselves out of this organization because of the positions they take, not necessarily on telecom. Because I'm sure that you all can find someone to lobby extremely effectively for whatever you want in telecom issues. But you need to pull out because of the whole range of positions that this organization takes, unless you agree with them, and if you agree with them, then shame on you.

Brian L. Roberts

Let me just say, we'll take a look as you suggested.

David L. Cohen

And Brian, if I can Brian, we received that the number of the ALEC questions came from the Fight Philly group. We received your petition yesterday, and we plan on responding in detail to that petition to you. So we will -- you will get a written response to that petition. Thank you.

Come back to the right-hand side.

Unknown Shareholder

My name is Richard Brooks [ph]. Mr. Roberts, I just have a question for you. I also don't directly work for Comcast, but I work for a company here in Philadelphia that is dealing with Comcast. And I'm also a shareholder. My question is, since you're a Philadelphia company that claims that you pay taxes here but you have 250 subsidiaries or companies in Delaware that don't pay taxes because you pay no taxes in Delaware, don't you think that's a mis-justice to the people that are investing in your company? And looking at the people that work for you that feel that they're being mistreated, don't you think your shareholders are being mistreated just as well as the people that work for you? So now what happens if these people have no jobs and you have no shareholders?

David L. Cohen

If I can, I'm going to do one more amplification. It's the third or fourth time that number has been used. And I just checked this with Mr. Block and that the companies we have incorporated in Delaware are basically investment subsidiaries. They are not operating businesses. They are not used to exploit the Delaware holding company tax loophole. They have nothing to do with the taxes that we pay here. They are entities that are incorporated there. They are not making money for the business. They are, therefore, not earning money. And if they were incorporated elsewhere, it would not affect our tax payments in any other state as well. It's simply taking advantage of a friendly corporate law environment for subsidiaries that are not operating subsidiaries of the company, do not generate income and do not impact the taxes that we pay in Pennsylvania or in Philadelphia. So further amplification to my answer before. The point you are making, and I just want to -- I mean, again, I'm going to say it again, this is a company that just doesn't fit in to the comfortable envelope of the way in which other companies are organized in which they pay their taxes. We pay a very significant tax burden in this state and in this locality. The pitch, as Mr. Roberts has said, about moving our corporate headquarters to other states is they present spreadsheets to us about all the taxes we could save by moving our headquarters elsewhere, and we have resisted all of those entreaties to leave our headquarters. So it's just a label that's not fair when it's applied to Comcast.

Go to the left-hand side.

Unknown Attendee

My name is Jeannette Cruz [ph]. I live in Philadelphia. I work in Philadelphia. My son goes to school and his school is going to be closed. My baby, he's 5. He's beautiful -- happy that he was going to start school this year, but he can't because his school is closing. And I want to thank Comcast for not helping.

David L. Cohen

Go to the right-hand side, please.

David Webster

Mr. Roberts. My name is David Webster [ph]. I'm a shareholder, and I'm a business agent for IBEW Local 21 out of Chicago. In 2008, a group of Comcast employees on Chicago's south side requested and were granted an election for union representation by the National Labor Relations Board. During that campaign, the company held weekly meetings to dissuade workers from exercising their legals rights to form a union. Also, during that campaign, the workers collected enough data to file objections with the board and had a second election held. Unfortunately, with the damage to the anti-union campaign already done, the workers fell short again. In 2010, that same group of workers decided to try one more time, convinced that their co-workers could not be fooled with the anti-union misinformation campaign again. At the 2010 Shareholders Meeting, I stood before you and I asked you to meet with us to agree with a process that gives workers a chance to hear all the facts relative to forming a union, like perhaps joint-employee meetings with the company and the union so workers could get all of the information. From that request, you granted a meeting. However, the meeting was not with you, as I suggested. We ended up meeting with 2 men, Andrew Topping [ph] and Patrick Patel [ph]. One of them told us that Comcast doesn't hold anti-union meetings. The other one told us that you would never agree to be neutral because you have a plan for organizing. Obviously, a joint meeting was never held, so employees, all you heard, the anti-union message delivered by your subordinates. Mr. Patel [ph] was subsequently flown to Chicago, stayed 3 days and spent his time telling workers that they could gain nothing by forming a union. He told them they could never do better with a contract than what they have today. In addition to Mr. Patel [ph], Ron Phillips, HR for Philadelphia, was also flown into Chicago to tell workers why they did not want a union. Mr. Phillips was also in town for more than one day. A sidenote, by the way, we can't get the negotiators to stay in Chicago for 3 days, but that's a separate point. It's also well-known fact, Mr. Roberts, that you have a close relationship with President Obama. In fact, you've entertained the President and the First Lady at your residence in Martha's Vineyard, knowing that President Obama sides with the wishes of employees in forming a union with a card check procedure that eliminates the need for a secret ballot election, which basically provides more time for employers to put on this vicious anti-union campaign. How do you continue to approve of your anti-union campaigns that actually originate in Philadelphia? And lastly, how much money did Comcast spend on flying 2 people to Chicago to dissuade workers from exercising their legal rights? Or maybe the question should be, how much money did Comcast spend on union busting in 2010?

Brian L. Roberts

Look, again, I'm not sure if you've met Mr. Strahan. We'll talk, if you think we've done something that's inappropriate. As I understand it, the election did not happen, and I appreciate your disappointment. But the fact is the company has complied with the rules of the country. The company has unions. Other locations don't have unions, and we leave it up to employees to make their own choices.

David Webster

This is why I asked to speak with you, Mr. Roberts. There was an election. In fact, there were 2 of them.

Brian L. Roberts

Thank you, sir.

David L. Cohen

Left-hand side.

Unknown Shareholder

My name is Patty Davidson [ph], and I'm a shareholder. I live here in Philadelphia, PA. I've heard a lot of talk today, Mr. Roberts, about the Delaware loophole. I've heard talk about ALEC. And I just want to let you know, would just inform that Walmart just dropped ALEC, so maybe that should be something for you to surmise. But my point that I want to get across is a little bit different than what everybody else has talked about. It's still about paying your fair share. You feel that Comcast is paying their fair share here in Pennsylvania. We disagree. So I ask you, why don't you, in good faith, adopt a school in all the cities where schools are closing, adopt a school, teach these children how to use your equipment, how to use the equipment that goes out to the small businesses just -- so that these children can grow up with a career. It wouldn't be that much money off for your back and you will get tax returns from that, too. So why don't you adopt the school?

Brian L. Roberts

First of all, thank you. In my remarks at the end of the meeting, I want to talk a little bit about the company's community service. There are different ways to attack the issue, in addition to taxes, as I appreciate you bringing up. One of the things that we are is a national partner in all of our major markets, including Philadelphia, with City Year, Chairman of the Board -- Co-Chairman of the Board at City Year works for Comcast. We have a national partner with Teach for America. We have a program called Internet Essentials, where we provide our high-speed Internet for $10 a month plus a discounted price to buy computers and digital literacy. We have a number of programs. I'm most proud of a program called Comcast Cares Day, where we managed to have maybe, I believe, the single largest day of volunteerism in corporate America, where we had close to 70,000 of our employees and their families work in -- how many projects?

David L. Cohen

This year, over 700 projects.

Brian L. Roberts

700 projects around the country, giving a day of service. So there's many, many things that we do. We appreciate your suggestion. Thank you for your comments.

David L. Cohen

Okay. Let me move to the right-hand podium again, please.

Brian L. Roberts

Dave, let me her make one more point. Let her make one more point.

Unknown Shareholder

My last point is, you said that it's like for $10 or so. We're in the middle of a recession. If you're talking about educating children, why can't you give the children the Internet free, even if you have locks on it so that the parents can't go on certain sites that adults would? Why not give it to the children free? Why should the children suffer because the corporations don't want to invest in the communities that they're taking money out of. The fees for Comcast is crazy. I'm a shareholder. I'm also a Comcast customer. And it's expensive. So why not give it to the kids free? I'm not talking about the adults. I'm talking about the kids. Do it for the kids.

Brian L. Roberts

Okay. I hear -- I appreciate your point. Thank you. We do free installation, and we also have a number of programs that offer children -- anybody on a school lunch voucher can take advantage of the program. It's the only company in America that did it. Phone companies didn't do it. Others haven't done it. They're just now following our lead but it's always can do more, and I hear your point. Thank you.

David L. Cohen

Let's go to the right-hand side, please.

Unknown Shareholder

My name is Ann [ph]. I live in Philadelphia. I have 3 children in the public schools. And I think that I want to reiterate the ALEC membership. I think it's important for your board to hear once again that the American Legislative Exchange Council has its hands in many sundry things. And if Comcast cares about PR, which I know that they do, really, the question is, do you want to be worse than Walmart? Walmart has dropped ALEC, and they have one of the worst images in terms of workers and all kinds of things. Do you really want to be worse than Walmart? Do your shareholders and your board really want to serve and contribute to a company that is worse than Walmart?

Brian L. Roberts

Thank you.

David L. Cohen

Come to the left-hand side, please.

Unknown Shareholder

My name is Sean [ph]. I'm from Montgomery County. I am Comcast shareholder, and I am a Comcast customer. I would also like to talk about ALEC in Pennsylvania. I don't know if you are -- any of you 3 up there are aware of what's been in happening in Pennsylvania. But ALEC legislation is going through a whole different -- a lot of stuff, public education. Governor Corbett has HB 1307, which will put 50% of school districts under a financial recovery officer in 3 years, if it goes through. And also, ALEC wrote provisions of Acts 13, which deals with hydraulic fracturing in Pennsylvania. The health provision in Act 13 that ALEC wrote, which Ohio adopted and other states are adopting, puts a gag order on physicians from talking about what chemicals are poisoning people throughout the state and throughout the shale regions in this country. Do you guys care about that or…

Brian L. Roberts

I closed the point and we said, we respond to the letter, and appreciate the [indiscernible] fabrication there.

David L. Cohen

Come to the right-hand side, please.

Unknown Shareholder

My name is Jim Ashville [ph]. I'm a Shareholder from New York City. I have a question about what I believe is the largest single item on the asset side of your balance sheet, mainly the franchise rights for your cable system. Actually, it's more than one question but they're all tied together. First of all, when you get a franchise, typically, what is the duration? Second, when it comes up for a renewal, is it a pretty much pro forma that you'll get it renewed and part of your service has been acceptable. Is there a chance it can get taken away from you? Third, what type of expenses do you typically incur at the time of renewal that you're amortizing over an extended period and are those expenses increasing? And finally, since you mentioned in the annual report that there are new franchise that's given out in the FCC, in general, has a policy against that it encourages the states or whatever, the local governments, to grant additional franchises. Do you feel confident in the valuation you put on the balance sheet. I mean, if there's more competition and because it's relatively easier to apply for a new license as opposed to have to buy one. Can you feel confident in the very high substantial valuation you have in the balance sheet for all those franchises? I know that's a mouthful.

Brian L. Roberts

Yes, it is a mouthful. What I might suggest, if you're comfortable, sir, is let me give you a very high-level answer for this moment. And Mr. Salva here is our Chief Accounting Officer. And if you would like to talk to him after the meeting, I'm sure he'd make himself available to go through the accounting technical policy. My I understanding is there's a federal presumption of renewal for those franchises under the FCC rules. We have been successful in renewing all of our franchises in almost every instance since the company's inception. Yes, there's increasing competition. And in the 10-K, you'll see that noted with the increasing competition, whether it's from satellite or from other facilities-based competition and other technologies. And so we think we fairly report the condition of the company. But if you want to have a further conversation, Mr. Salva is here. Thank you.

David L. Cohen

Left-hand side. Okay. Ma'am, we'll go to the left-hand microphone, again.

Unknown Shareholder

Well, on a lighter note, my name is Alma Worthel [ph]. I'm a shareholder and a resident of Philadelphia, and I'm a customer of Comcast. And I came to Comcast through U.S. West and MediaOne and AT&T and Cellular One, so I've been in with telecom for a very long time. I would just like to make a comment about the presentation of the meeting. I can't speak to any of the other issues. I'm only going to speak about that. I think it's rather dismissive of whoever planned the meeting not to think about the courtesy to the shareholders. I was sitting on the other side, and I could not see the people who were standing on this side speaking. You have the screens here, and I think as a telecom company, we could start showing videos of people up on the screen so we would know who's speaking. I think that would be very helpful to us. We wouldn't have to be turning around. I'm sure that people on the left can't really see me, and I don't know how many people on the right, even if they want to see me. But I think it would be courteous to do that. And I think it would be courteous to have your names up so that we would know who was speaking. I'm an older person. I really would forget, but I could actually write it down. I don't think it was on your agenda flip that I got. But I just want to comment about being a customer of Comcast. I've always had courteous, immediate service, and I want to thank you for that. I think that a very good philosophy for a corporation is to think of everyone as part of their family. And no child wants to feel that another child has special privileges. We all want to be treated equally. And I think a philosophy like that for a company of our size would be very, very helpful to all who work for Comcast and are part of Comcast.

Brian L. Roberts

Thank you.

David L. Cohen

Thank you. Right-hand side.

Unknown Shareholder

My name is Marjorie Hill [ph], and I live in Haddonfield, New Jersey. And I'm a shareholder, and I'm only here representing myself. I thought it would be an interesting experience it has been, and I just decided I wanted to say that I love MSNBC. I'm retired. I watch it all day long. I love Chris Matthews. I love Rachel Maddow. I love Lawrence O'Donnell and especially Rachel Maddow, who's trying to keep on top of what's happening to women in this country right now, not only women, all kinds of financial and political things that are going on behind the scenes but especially with women. And she's keeping on top of it. And I think that the research department that they use is doing a fabulous, fabulous job. I'm a retired business librarian from Ernst & Young, and I think they're doing great job.

Brian L. Roberts

Thank you.

David L. Cohen

Thank you. There is one more question here. Yes, okay.

Unknown Shareholder

My name is Phil Faultermier [ph]. I'm a shareholder of not too many shares, only 30. I gave the bulk of what I have to my children. And unfortunately, they can't all be at this meeting. One's a doctor, and the others are working today. But I did want to thank you for the efforts of this company in the community. I hear complaints about taxes. I know again -- I'll repeat it again, your father, Ralph Roberts, came to the Germantown High School many times from which he graduated and made presentations in the assembly, and he gave help to those students for their future. This is community activity at its best. I do want to say one other thing about CNBC. I watch it from 4:00 a.m. until practically midnight. I love it, and Jim Cramer who is one of the leading speakers on that program was educated -- a graduated of Springfield Township High School and he grew up in Wyndmoor, where I lived for 40 years.

Brian L. Roberts

Thank you. That is a nice way to end our question session.

David L. Cohen

Is that it or is there...

Unknown Executive

No, that's it.

David L. Cohen

That's it. Okay, sorry.

Brian L. Roberts

So let me turn to Mr. Block and ask him to call for the vote, and then I'll give a brief report on the company's activities.

Arthur R. Block

Thank you. A share vote will now be taken by ballot on the matters to be voted upon at the meeting the polls are opened. Holders of Class A common stock and their proxies present at the meeting who have not already submitted a completed proxy and who wish to record their votes, they do so by painting the ballot from an usher and returning it to the usher. Please make yourselves known to an usher if that's what you'd like to do. If you've already voted, keep in mind, your shares will be voted in accordance with your prior instructions, and you do not need to complete a ballot today.

I'm pausing to allow folks who need a ballot in person to get one from the ushers. Anyone that wishes to have a ballot and not received one yet? Thank you.

We will close the polls when the ballots that have been handed out have been received back to the ushers and the judge of election will then tabulate the ballots and the votes. And the result of the votes will be reported on a Form 8-K, an SEC filing, that will be filed by the company as required within the next few days. Thank you.

Brian L. Roberts

Okay. I'd like to now give a brief report of the company. And let me begin by saying I think 2011 -- the slides, switching there. Give me a moment to pull them up. So I'll be brief, but I think given the integration of NBCUniversal went extremely well for our first year. You can see the company size revenue was up 47%, cash flow 26%, free cash flow 30%. A lot of that, of course, comes from NBC. And we bought 50% of Universal Orlando during the year.

I'd like to really focus on some of the innovation and success under our leadership of both Steve Burke at NBC Universal; Neil Smit, who is now and has been successfully running Comcast XFINITY and the cable division; Mike Angelakis, our Vice Chairman and CFO, is also with us this morning.

So if you look at where we've gotten to just in a short period of time, where video space, we now have 22 million video customers. 11 million of those customers now purchase Hi-Def and DVR. They're fully 50%. We've cut our losses to competition by 40%, and we've upgraded another 750,000 during the year to the HD and DVR. High-speed Internet is really powering our company. We had 1.2 million new high-speed Internet customers. That was a 10% increase over the year before. This is a more than 10-year-old product, and it's getting better every year and more important to all of us as consumers. We have, we believe, and according to PC Magazine, the fastest high-speed Internet in the country. This year, we’ve increased our speed several times, and we really see that the success accelerating.

We also had a good year in voice. We added 732,000 digital voice customers. And just last week, we announced that we're going to enhance these products, all of the products during the Cable Convention that was in Boston.

Another aspect to the company that's growing fast is our business services, really one of the fastest drivers of growth, about 40% growth rate, strong momentum. These are companies with less than 20 employees. We're expanding into the mid-sized market, as you can see. That doubles the market opportunity, and we've built a very successful management team. And they're having great success selling high-speed Internet and voice to telecom companies, small and -- the telecom services and communications and video services to businesses, small and medium size.

We're expanding into XFINITY home, which is security, energy management, home control, climate control. We now have 72% of our footprint that had this new product available. We hope some of you will try it out. We also need to and, I think, have made terrific strides on improving our customer experience. It was nice to hear one customer's experience just there. We have literally hundreds of millions of transactions a year. We can't get them all perfect, but we have a guarantee and our promise. And we have now got 90% of our footprint, 90% of the country, 35 states, where we offer our customers 2-hour appointment windows or less. No longer is it, see you in the morning, see you in the afternoon. We have 97% completion rate for those 2-hour windows. And our service calls in the last year alone declined by 15%, so tremendous progress the team has been making on the customer experience.

And really, what I think we're doing so well, and I won't spend too much time here, but it's innovation and changing what a cable company is all about. Today -- we started in one place with my father doing television reception 50 years ago. And today, we have On Demand with 35,000 choices; 200,000, if you have a computer; 8,000 if you have an iPad. We have launched Streampix. We're about to launch a new guide, which you'll see in the coming months, called the X1. It's a new box, a new guide. It's nothing like it out there in the market in our opinion. It's fantastic. We launched -- we just announce we will launch in Boston. We've been testing it in Georgia. And it is bringing all of the Internet to your television in terms of the capabilities from the cloud and the intelligence in the network, all very encouraging trends.

As we switch to NBCUniversal and what's happened there, we're going to show a short video here that gives you a sense of our early accomplishments in year 1 under Steve's leadership. So if you can roll the video, please.

[Presentation]

Hopefully, you can sense the excitement, the breadth of the businesses and makes you proud to be a stockholder in the company. And I think almost everyday, every week, there's some new event. So just this -- everybody go to Snow White this weekend and watch the Olympics and NBC next month. As we fundamentally believe, it is the heart and soul of the company and the employee base. And when we turned out Comcast Cares Day, I was a little low. 75,000 employees, 650-plus projects that made me incredibly, incredibly proud to be leading this company.

We worked in planning schools and painting -- planting trees and gardens, painting schools, cleaning up parks, purifying community centers, wiring Big Brothers/Big Sisters, United Way, all participated with us, National Urban League, City Year, National Council of La Raza. A very broad coalition of partners in the community helping us determine which are the right 650 projects to work on. And we have many other things that we do in community service, but I just wanted to thank our employees for, once again, making it such a special day. And we'll do it again next year. And we work with so many organizations. It's too many to mention at this time. But for those of you interested, we have a brochure that we have on all of our community investment activities, and we're happy to provide that to you.

Finally, I think it is the job of the board and the management to stay focused on all our shareholder returns, and we're very pleased in the last year. We increased our dividend by 44% in February. We announced an authorization of $6.5 billion of stock buyback, at least $3 billion will be bought this year. In 2011, the market S&P 500 was up 2%. We were up 11%. And so far in 2012, the market is up 7%. We're up 24%. The stat and the chart that I always like to end the meeting on is if you had invested with my dad 1,000 shares at $7 in 1972, you can see we've nearly doubled the S&P for 40-plus years, if I've got my math right, and you'd have $4.2 million from a $7,000 investment. So we'd like to think long term. We think we're focused for shareholder returns. We thank you for coming to the meeting.

And with that, I will move the meeting to adjournment. Thank you all.

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