Comcast 2013 Annual Report Download - page 164

Table of Contents
NBCUniversal Media, LLC
during a particular time of day or programs of a similar type. Acquired programming used in our Cable Networks segment is
primarily tested on a channel basis for impairment, whereas acquired programming used in our Broadcast Television segment is
tested on a daypart basis. If we determine that the estimates of future cash flows are insufficient or if there is no plan to broadcast
certain programming, we recognize an impairment charge to programming and production expense.
Note 6: Investments
Equity Method
We use the equity method to account for investments in which we have the ability to exercise significant influence over the
investee’
s operating and financial policies or where we hold significant partnership or LLC interests. Equity method investments are
recorded at cost and are adjusted to recognize (i) our proportionate share of the investee’
s net income or losses after the date of
investment, (ii) amortization of the recorded investment that exceeds our share of the book value of the investee’
s net assets,
(iii) additional contributions made and dividends received, and (iv) impairments resulting from other-than-
temporary declines in fair
value. Gains or losses on the sale of equity method investee are recorded to other income (expense), net. If an equity method
investment were to issue additional securities that would change our proportionate share of the entity, we would recognize the
change, if any, as a gain or loss in our consolidated statement of income.
The Weather Channel
In June 2013, we received a distribution from The Weather Channel Holding Corp. (“The Weather Channel”)
of $152 million, of
which $128 million was recorded as a return of our investment in The Weather Channel and included under the caption
“
return of
capital from investees” in our consolidated statement of cash flows.
Hulu
In July 2013, we entered into an agreement to provide capital contributions totaling $247 million to Hulu, LLC (“Hulu”),
which we
had previously accounted for as a cost method investment. This represented an agreement to provide our first capital contribution
to Hulu since Comcast acquired its interest in Hulu as part of the Joint Venture transaction, therefore we began to apply the equity
method of accounting for this investment. The change in the method of accounting for this investment required us to recognize our
proportionate share of Hulu’
s accumulated losses from the date of the Joint Venture transaction through July 2013. Prior period
financial statements have not been restated as the amounts are not material for the periods presented.
Impairment Testing of Investments
We review our investment portfolio each reporting period to determine whether there are identified events or circumstances that
would indicate there is a decline in the fair value that would be considered other than temporary. For our nonpublic investments, if
there are no identified events or circumstances that would have
Successor
December 31 (in millions)
2013
2012
Fair Value Method
$
11
$
21
Equity Method:
The Weather Channel
333
471
Hulu
187
—
Other
332
545
852
1,016
Cost Method
21
229
Total investments
$
884
$
1,266
159
Comcast 2013 Annual Report on Form 10
-
K