Comcast 2013 Annual Report Download - page 107

Table of Contents
Comcast Corporation
Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the
valuation of financial instruments and their classification within the fair value hierarchy. Financial instruments are classified in their
entirety based on the lowest level of input that is significant to the fair value measurement. There have been no changes in the
classification of any financial instruments within the fair value hierarchy in the periods presented. Our financial instruments that are
accounted for at fair value on a recurring basis are presented in the table below.
Recurring Fair Value Measures
Contractual Obligations and Contingent Consideration
The fair values of the contractual obligations and contingent consideration in the table above are primarily based on certain
expected future discounted cash flows, the determination of which involves the use of significant unobservable inputs. The most
significant unobservable inputs we use are our estimates of the future revenue we expect to generate from certain NBCUniversal
entities, which are related to our contractual obligations, and future net tax benefits that will affect payments to GE, which are
related to contingent consideration. The discount rates used in the measurements of fair value were between 5% and 13% and are
based on the underlying risk associated with our estimate of future revenue, as well as the terms of the respective contracts, and
the uncertainty in the timing of our payments to GE. The fair value adjustments to contractual obligations and contingent
consideration are sensitive to the assumptions related to future revenue and tax benefits, respectively, as well as to current interest
rates, and therefore, the adjustments are recorded to other income (expense), net in our consolidated statement of income.
Fair Value as of December 31, 2013
Fair Value as of December 31, 2012
(in millions)
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Assets
Trading securities
$
3,956
$
—
$
—
$
3,956
$
4,027
$
—
$
—
$
4,027
Available
-
for
-
sale securities
260
118
11
389
367
76
21
464
Interest rate swap agreements
—
110
—
110
—
210
—
210
Other
—
80
1
81
—
36
2
38
Total
$
4,216
$
308
$
12
$
4,536
$
4,394
$
322
$
23
$
4,739
Liabilities
Derivative component of prepaid forward sale agreements
and indexed debt instruments
$
—
$
2,816
$
—
$
2,816
$
—
$
2,305
$
—
$
2,305
Contractual obligations
—
747
747
—
—
1,055
1,055
Contingent consideration
—
—
684
684
—
—
587
587
Other
—
16
—
16
—
14
—
14
Total
$
—
$
2,832
$
1,431
$
4,263
$
—
$
2,319
$
1,642
$
3,961
Comcast 2013 Annual Report on Form 10-K
102