Comcast 2014 Annual Report Download - page 101

Table of Contents
Comcast Corporation
Note 6: Film and Television Costs
Based on our estimates of the ratio of the current period’
s actual revenue to the estimated total remaining gross revenue from all
sources (“ultimate revenue”),
as of December 31, 2014, approximately $1.3 billion of film and television costs associated with our
original film and television productions that have been released, or completed and not yet released, are expected to be amortized
during 2015. Approximately 86% of unamortized film and television costs for our released productions, excluding amounts allocated
to acquired libraries, are expected to be amortized through 2017.
As of December 31, 2014, acquired film and television libraries, which are included within the “released, less amortization”
captions
in the table above, had remaining unamortized costs of $570 million. These costs are generally amortized over a period not to
exceed 20 years, and approximately 51% of these costs are expected to be amortized through 2017.
Capitalization of Film and Television Costs
We capitalize film and television production costs, including direct costs, production overhead, print costs, development costs and
interest. We amortize capitalized film and television production costs, including acquired libraries, and accrue costs associated with
participation and residual payments to programming and production expense. We generally record the amortization and the
accrued costs using the individual film forecast computation method, which amortizes such costs in the same ratio as the
associated ultimate revenue. 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.
December 31 (in millions)
2014
2013
Film Costs:
Released, less amortization
$
1,371
$
1,630
Completed, not released
71
70
In production and in development
1,189
658
2,631
2,358
Television Costs:
Released, less amortization
1,273
1,155
In production and in development
505
370
1,778
1,525
Programming rights, less amortization
2,157
2,039
6,566
5,922
Less: Current portion of programming rights
839
928
Film and television costs
$
5,727
$
4,994
Comcast 2014 Annual Report on Form 10
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