Comcast 2013 Annual Report Download - page 159

Table of Contents
NBCUniversal Media, LLC
the shortfall is settled, primarily by providing additional advertising time. We record revenue from the licensing of our owned
programming when the content is available for use by the licensee, and when certain other conditions are met. When license fees
include advertising time, we recognize the advertising time component of revenue when the advertisements are aired or viewed.
Filmed Entertainment Segment
Our Filmed Entertainment segment generates revenue primarily from the worldwide distribution of our owned and acquired films for
exhibition in movie theaters, the licensing of our owned and acquired films to cable, broadcast and premium networks and digital
distributors, and the sale of our owned and acquired films on both standard-definition DVDs and Blu-ray discs (together, “DVDs”
)
and through digital distributors. We also generate revenue from producing and licensing live stage plays and distributing filmed
entertainment produced by third parties. We recognize revenue from the distribution of films to movie theaters when the films are
exhibited. We record revenue from the licensing of a film when the film is available for use by the licensee, and when certain other
conditions are met. We recognize revenue from DVD sales, net of estimated returns and customer incentives, on the date that
DVDs are delivered to and made available for sale by retailers.
Theme Parks Segment
Our Theme Parks segment generates revenue primarily from theme park attendance and per capita spending at our Universal
theme parks in Orlando and Hollywood, as well as from licensing and other fees. We recognize revenue from advance theme park
ticket sales when the tickets are used. For annual passes, we recognize revenue on a straight-
line basis over the annual period
following the initial redemption date.
Advertising Expenses
Advertising costs are expensed as incurred.
Cash Equivalents
The carrying amounts of our cash equivalents approximate their fair value. Our cash equivalents consist primarily of money market
funds and U.S. government obligations, as well as commercial paper and certificates of deposit with maturities of less than three
months when purchased.
Derivative Financial Instruments
We use derivative financial instruments to manage our exposure to the risks associated with fluctuations in foreign exchange rates
and interest rates. Our objective is to manage the financial and operational exposure arising from these risks by offsetting gains and
losses on the underlying exposures with gains and losses on the derivatives used to economically hedge them.
Our derivative financial instruments are recorded on our consolidated balance sheet at fair value. The impact of our derivative
financial instruments on our consolidated financial statements was not material for all periods presented.
Note 3: Significant Transactions
2013
Redemption Transaction
On March 19, 2013, Comcast acquired GE’
s remaining 49% common equity interest in NBCUniversal for approximately $16.7
billion (the “Redemption Transaction”).
In addition to this transaction, we purchased from GE certain properties we occupy at 30
Rockefeller Plaza in New York City and CNBC’s headquarters in Englewood Cliffs, New Jersey for $1.4 billion.
Comcast 2013 Annual Report on Form 10-K
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