Comcast 2010 Annual Report Download - page 53

Table of Contents
NBCUniversal
The table below presents the contractual obligations related to the NBCUniversal contributed businesses as of December 31, 2010,
excluding NBCUniversal’
s payment of $7.4 billion to GE at the close of the NBCUniversal transaction on January 28, 2011 and
other acquisition-related obligations.
Payments of $1.6 billion of participations and residuals are not included in the table above because we cannot make a reliable
estimate of the period in which the obligations will become payable. Additionally, we have not reflected incremental obligations that
may arise as a result of the NBCUniversal transaction.
Payment Due by Period
(in millions)
Total
Year 1
Years 2-
3
Years 4-
5
More than 5
Debt obligations
$
9,100
$
—
$
—
$
1,900
$
7,200
Purchase obligations
8,568
3,370
3,877
950
371
Operating leases
1,455
252
386
261
556
Other long-term obligations
852
444
296
62
50
Total
$
19,975
$
4,066
$
4,559
$
3,173
$
8,177
(a)
Excludes interest payments and the principal amount due on an $816 million senior secured note as described under Station Venture Note below.
(b)
Purchase obligations consist primarily of the commitments to acquire film and television programming, including U.S. television rights to the future Olympic Games, NBC’
s
Sunday Night Football through the 2013-
2014 season and the NFL Super Bowl in 2012; and obligations under various creative talent and employment agreements,
including obligations to actors, producers, television personalities and executives, and various other television commitments.
(c)
Other long-term obligations consist primarily of programming obligations payable under NBCUniversal’s license arrangements.
47
Comcast 2010 Annual Report on Form 10-
K
(a)
(b)
(c)
Station Venture Note
NBCUniversal owns an economic interest of approximately
79% and a 50% voting interest in Station Venture Holdings,
LLC (“Station Venture”). Station Venture, through its
ownership interests in Station Venture Operations, LP
(“Station LP”), holds an indirect interest in the NBC Network
affiliated local television stations in Dallas, Texas and San
Diego, California. The remaining interests in these television
stations are held by LIN TV, Corp (“LIN TV”). Station Venture
is the obligor on an $816 million senior secured note due in
2023, which is non-recourse to NBCUniversal and is due to
General Electric Capital Corporation, a subsidiary of GE. The
note is collateralized by substantially all of the assets of
Station Venture and Station LP, and is guaranteed by LIN
TV. In connection with the closing of the NBCUniversal
transaction, GE has indemnified NBCUniversal for all
liabilities NBCUniversal incurs as a result of the note, or
under any related credit support, risk of loss or similar
arrangement in existence prior to the closing of the
NBCUniversal transaction on January 28, 2011. As a result of
the indemnification from GE, we have not included the $816
million note in NBCUniversal’s debt obligations in the table
above.
NBCUniversal Guarantees
NBCUniversal has certain contingent commitments that are
not included in the table above. NBCUniversal guarantees an
obligation of its 50% joint venture, Universal City
Development Partners, (“UCDP”), which owns Universal
Studios Florida and Islands of Adventure in Orlando, Florida.
UCDP pays fees to a consultant equal to a percentage of
revenue from NBCUniversal facilities located in Orlando and
from defined comparable projects outside Orlando.
NBCUniversal directly pays the fees due under the consulting
agreement on behalf of UCDP with respect to Universal
Studios Japan and Universal Studios Singapore. The
consulting agreement does not have a termination date and
the consultant has an option to terminate the consulting
agreement in exchange for a lump sum payment established
by a formula in the consulting agreement. The consultant’s
right to elect a lump sum payment cannot be exercised prior
to June 2017. If UCDP cannot pay the fees owed under the
consulting agreement or, if elected, the lump sum payment
for termination of the consulting agreement, NBCUniversal
could be liable for the entire unpaid amounts.
Additionally, affiliates of the Blackstone Group L.P. hold a
50% interest in UCDP through their equity interests in
UCDP’s general and limited partners. Those Blackstone
Group affiliates entered into a five-year loan agreement in
November 2009 with a syndicate of lenders in the amount of
$305 million, including prefunded interest and amortization,
which is secured by their equity interests in UCDP.
NBCUniversal guaranteed the loan on a deficiency basis and
received a fee for the guarantee. Future distributions, other
than tax distributions, from UCDP to the Blackstone Group
affiliate borrowers are applied to the repayment of the loan.
NBCUniversal Film Financing
NBCUniversal enters into film co-financing arrangements with
third parties, including both studio and non-studio entities, to
jointly finance or distribute many of its film productions.
These arrangements can take various forms. In most cases,
the form of the arrangement involves the grant of an
economic interest in a film to an investor. Investors typically
assume the full risks and rewards of ownership proportionate
to their ownership in the film. Accordingly, NBCUniversal’s
proceeds in these arrangements are accounted for as a
reduction of the capitalized cost of the film. Any