Comcast 2014 Annual Report Download - page 102

Table of Contents
Comcast Corporation
We enter into cofinancing arrangements with third parties to jointly finance or distribute certain of our film productions. Cofinancing
arrangements can take various forms, but in most cases involve the grant of an economic interest in a film to an investor. The
number of investors and the terms of these arrangements can vary, although investors generally assume 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 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.
Note 7: Investments
December 31 (in millions)
2014
2013
Fair Value Method
$
662
$
4,345
Equity Method:
The Weather Channel
335
333
Hulu
167
187
Other
517
469
1,019
989
Cost Method:
AirTouch
1,568
1,553
Other
488
456
2,056
2,009
Total investments
3,737
7,343
Less: Current investments
602
3,573
Noncurrent investments
$
3,135
$
3,770
97
Comcast 2014 Annual Report on Form 10
-
K