Comcast 2014 Annual Report Download - page 161

Table of Contents
NBCUniversal Media, LLC
Note 2: Accounting Policies
Our consolidated financial statements are prepared in accordance with GAAP, which requires us to select accounting policies,
including in certain cases industry-
specific policies, and make estimates that affect the reported amount of assets, liabilities,
revenue and expenses, and the related disclosure of contingent assets and contingent liabilities. Actual results could differ from
these estimates. We believe that the judgments and related estimates for the following items are critical in the preparation of our
consolidated financial statements:
In addition, the following accounting policies are specific to the industries in which we operate:
Information on our other accounting policies or methods related to our consolidated financial statements are included, where
applicable, in their respective footnotes that follow. Below is a discussion of accounting policies and methods used in our
consolidated financial statements that are not presented within other footnotes.
Revenue Recognition
Cable Networks and Broadcast Television Segments
Our Cable Networks segment generates revenue primarily from the distribution of our cable network programming to multichannel
video providers, from the sale of advertising on our cable networks and related digital media properties, from the licensing of our
owned programming through distribution to subscription video on demand services and various other distribution platforms, and
from the sale of our owned programming electronically through digital distributors such as iTunes. Our Broadcast Television
segment generates revenue primarily from the sale of advertising on our broadcast networks, owned local broadcast television
stations and related digital media properties, from the licensing of our owned programming through various distribution platforms,
including to cable and broadcast networks and to subscription video on demand services, and from fees received under
retransmission consent agreements. We recognize revenue from distributors as programming is provided, generally under
multiyear distribution agreements. From time to time, the distribution agreements expire while programming continues to be
provided to the distributor based on interim arrangements while the parties negotiate new contract terms. Revenue recognition is
generally limited to current payments being made by the distributor, typically under the prior contract terms, until a new contract is
negotiated, sometimes with effective dates that affect prior periods. Differences between actual amounts determined upon
resolution of negotiations and amounts recorded during these interim arrangements are recorded in the period of resolution.
Advertising revenue for our Cable Networks and Broadcast Television segments is recognized in the period in which commercials
are aired or viewed. In some instances, we guarantee viewer ratings for the commercials. To the extent there is a shortfall in the
ratings that were guaranteed, a portion of the revenue is deferred until the shortfall is settled, primarily by providing additional
advertising units. We record revenue from the licensing of our owned programming when the content is available for use by the
licensee, and when certain other conditions are met. When license fees include advertising time, we recognize the component of
revenue associated with the advertisements when they are aired or viewed.
•
revenue recognition (see below)
•
film and television costs (see Note 6)
•
goodwill and intangible assets (see Note 9)
•
fair value of contractual obligations (see Note 11)
•
capitalization and amortization of film and television costs (see Note 6)
Comcast 2014 Annual Report on Form 10
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