Comcast 2012 Annual Report Download - page 104

Table of Contents
Changes in Contractual Obligations and Contingent Consideration
Nonrecurring Fair Value Measures
We have assets and liabilities that are required to be recorded at fair value on a nonrecurring basis when certain circumstances
occur. In the case of film or stage play production costs, upon the occurrence of an event or change in circumstance that may
indicate that the fair value of a production is less than its unamortized costs, we determine the fair value of the production and record
an adjustment for the amount by which the unamortized capitalized costs exceed the production’
s fair value. The estimate of fair
value of a production is determined using Level 3 inputs, primarily an analysis of future expected cash flows. Adjustments to
capitalized film and stage play production costs of $161 million and $57 million were recorded in 2012 and 2011, respectively.
Note 11: Noncontrolling Interests
Certain of the subsidiaries that we consolidate are not wholly owned. Some of the agreements with the minority partners of these
subsidiaries contain redemption features whereby interests held by the minority partners are redeemable either (i) at the option of the
holder or (ii) upon the occurrence of an event that is not solely within our control. If interests were to be redeemed under these
agreements, we would generally be required to purchase the interest at fair value on the date of redemption. These interests are
presented on the balance sheet outside of equity under the caption “redeemable noncontrolling interests.”
Noncontrolling interests
that do not contain such redemption features are presented in equity.
In connection with the NBCUniversal transaction in January 2011, we obtained a portion of our interest in NBCUniversal Holdings in
exchange for GE receiving a 49% indirect noncontrolling interest in the Comcast Content Business. The difference between the fair
value of the interest we received and the historical carrying value of the noncontrolling interest in the Comcast Content Business
resulted in an increase of $1.7 billion, net of taxes, to additional paid-in capital in 2011.
GE’
s 49% interest in NBCUniversal Holdings is recorded as a redeemable noncontrolling interest in our consolidated financial
statements due to the redemption provisions discussed in Note 4. The initial value for the redeemable noncontrolling interest was
based on the fair value for the portion attributable to the net assets of the NBCUniversal businesses we acquired and based on our
historical cost for the portion attributable to the Comcast Content Business. We adjust GE’
s redeemable noncontrolling interest for its
49% interest in NBCUniversal Holdings’ and NBCUniversal’
s earnings and changes in other comprehensive income, as well as for
other capital transactions attributable to GE. The carrying amount of GE’
s redeemable noncontrolling interest was in excess of the
estimated redemption value as of December 31, 2012.
On February 12, 2013, we entered into an agreement to acquire GE’
s 49% common equity interest in NBCUniversal Holdings. See
Note 21 for additional information.
(in millions)
Contractual
Obligations
Contingent
Consideration
Balance, December 31, 2011
$
1,004
$
583
Acquisition accounting adjustments
(47
)
—
Fair value adjustments
186
137
Payments
(88
)
(133
)
Balance, December 31, 2012
$
1,055
$
587
101
Comcast 2012 Annual Report on Form 10-
K