Comcast 2013 Annual Report Download - page 93

Table of Contents
Comcast Corporation
When our Cable Communications segment receives incentives from cable networks for the licensing of their programming, we defer
a portion of these incentives, which are included in other current and noncurrent liabilities, and recognize them over the term of the
contract as a reduction to programming and production expenses.
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 interest rates, foreign
exchange rates and equity prices. 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. See Note 6 for additional
information on the derivative component of our prepaid forward sale agreements. The impact of our other derivative financial
instruments on our consolidated financial statements was not material for all periods presented.
Asset Retirement Obligations
Certain of our cable franchise agreements and lease agreements contain provisions requiring us to restore facilities or remove
property in the event that the franchise or lease agreement is not renewed. We expect to continually renew our cable franchise
agreements and therefore cannot reasonably estimate any liabilities associated with such agreements. A remote possibility exists
that franchise agreements could be terminated unexpectedly, which could result in us incurring significant expense in complying
with restoration or removal provisions. The disposal obligations related to our properties are not material to our consolidated
financial statements. We do not have any significant liabilities related to asset retirements recorded in our consolidated financial
statements.
Comcast 2013 Annual Report on Form 10-K
88