Comcast 2013 Annual Report Download - page 97

Table of Contents
Comcast Corporation
enue. Estimates of total revenue and total costs are based on anticipated release patterns, public acceptance and historical results
for similar productions. Unamortized film and television costs, including acquired film and television libraries, are stated at the lower
of unamortized cost or fair value. We do not capitalize costs related to the distribution of a film to movie theaters or the licensing or
sale of a film or television production, which are primarily costs associated with the marketing and distribution of film and television
programming.
In determining the estimated lives and method of amortization of acquired film and television libraries, we generally use the method
and the life that most closely follow the undiscounted cash flows over the estimated life of the asset.
Upon the occurrence of an event or a change in circumstance that was known or knowable as of the balance sheet date and that
indicates the fair value of a film is less than its unamortized costs, we determine the fair value of the film and record an impairment
charge for the amount by which the unamortized capitalized costs exceed the film’s fair value.
We enter into arrangements with third parties to jointly finance and distribute certain of our film productions. These arrangements,
which are referred to as cofinancing arrangements, can take various forms. In most cases, the arrangement involves the grant of an
economic interest in a film to a third-
party investor. The number of investors and the terms of these arrangements can vary,
although in most cases an investor assumes full risk for the portion of the film acquired in these arrangements. We account for the
proceeds received from a third-
party investor under these arrangements as a reduction to our capitalized film costs. In these
arrangements, the investor owns an undivided copyright interest in the film and, therefore, in each period we record either a charge
or a benefit to programming and production expense to reflect the estimate of the third-party investor’
s interest in the profit or loss
of the film. The estimate of the third-party investor’
s interest in the profit or loss of a film is determined using the ratio of actual
revenue earned to date to the ultimate revenue expected to be recognized over the film’s useful life.
We capitalize the costs of programming content that we license but do not own, including rights to multiyear live-
event sports
programming, at the earlier of when payments are made for the programming or when the license period begins and the content is
available for use. We amortize capitalized programming costs as the associated programs are broadcast. We amortize multiyear,
live-event sports programming rights using the ratio of the current period’
s revenue to the estimated total remaining revenue or
under the terms of the contract.
Acquired programming costs are recorded at the lower of unamortized cost or net realizable value on a program by program,
package, channel or daypart basis. A daypart is an aggregation of programs broadcast 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.
Comcast 2013 Annual Report on Form 10
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K
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