Comcast 2014 Annual Report Download - page 112

Table of Contents
Comcast Corporation
revenue, the terms of the respective contracts and the uncertainty in the timing of our payments to GE. The fair value adjustments
to contractual obligations and contingent consideration are sensitive to the assumptions related to future revenue and tax benefits,
respectively, as well as to current interest rates, and therefore the adjustments are recorded to other income (expense), net in our
consolidated statement of income.
Changes in Contractual Obligations and Contingent Consideration
Nonrecurring Fair Value Measures
We have assets and liabilities that are required to be recorded at fair value on a nonrecurring basis when certain circumstances
occur. In the case of film, television or stage play production costs, upon the occurrence of an event or change in circumstance that
may indicate that the fair value of a production is less than its unamortized costs, we determine the fair value of the production and
record an adjustment for the amount by which the unamortized capitalized costs exceed the production’
s fair value. The estimated
fair value of a production is based on Level 3 inputs that primarily use an analysis of future expected cash flows. Adjustments to
capitalized film and stage play production costs of $26 million, $167 million and $161 million were recorded in 2014, 2013 and
2012, respectively.
Note 12: Postretirement, Pension and Other Employee Benefit Plans
The table below provides condensed information on our postretirement and pension benefit plans.
(in millions)
Contractual
Obligations
Contingent
Consideration
Balance, December 31, 2013 $
747
$
684
Fair value adjustments
208
31
Payments
(72
)
(71
)
Balance, December 31, 2014
$
883
$
644
2014
2013 2012
Year ended December 31 (in millions)
Postretirement
Benefits
Pension
Benefits
Postretirement
Benefits
Pension
Benefits
Postretirement
Benefits
Pension
Benefits
Benefit obligation
$
837
$
581
$
633
$
498
$
703
$
805
Fair value of plan assets
—
242
—
220
—
403
Plan funded status and recorded benefit
obligation
(837
)
(339
)
(633
)
(278
)
(703
)
(402
)
Portion of benefit obligation not yet
recognized in benefits expense
46
53
(110
)
(3
)
17
151
Benefits expense
59
14
65
12
60
163
Discount rate
4.25
%
3.75
-
4.25
%
5.00-
5.25
%
4.50-
5.25
%
4.25
%
3.25-
4.25
%
Expected return on plan assets
N/A
5.00
%
N/A
5.00
%
N/A
5.00
%
(a)
The fair value of the plan assets are primarily based on Level 1 inputs that use quoted market prices for identical financial instruments in an active market.
(b)
We did not recognize service costs related to our pension plans in 2014 and 2013 as the plans were frozen. The 2012 amount included service costs related to our
pension benefits of $139 million.
107
Comcast 2014 Annual Report on Form 10
-
K
(a)
(b)