Comcast 2014 Annual Report Download - page 162

Table of Contents
NBCUniversal Media, LLC
Filmed Entertainment Segment
Our Filmed Entertainment segment generates revenue primarily from the worldwide distribution of our produced and acquired films
for exhibition in movie theaters, from the licensing of our owned and acquired films through various distribution platforms, and from
the sale of our owned and acquired films on standard-definition video discs and Blu-ray discs (together, “DVDs”)
and electronically
through digital distributors. Our Filmed Entertainment segment also generates revenue from producing and licensing live stage
plays, from the distribution of filmed entertainment produced by third parties, and from a movie ticketing and entertainment
business. We recognize revenue from the distribution of films to movie theaters when the films are exhibited. We record revenue
from the licensing of a film when the film is available for use by the licensee, and when certain other conditions are met. We
recognize revenue from DVD sales, net of estimated returns and customer incentives, on the date that DVDs are delivered to and
made available for sale by retailers.
Theme Parks Segment
Our Theme Parks segment generates revenue primarily from theme park attendance and per capita spending at our Universal
theme parks in Orlando, Florida and Hollywood, California, as well as from licensing and other fees. We recognize revenue from
advance theme park ticket sales when the tickets are used. For annual passes, we recognize revenue on a straight-
line basis over
the annual period following the initial activation date.
Advertising Expenses
Advertising costs are expensed as incurred.
Cash Equivalents
The carrying amounts of our cash equivalents approximate their fair values. Our cash equivalents consist primarily of money market
funds and U.S. government obligations, as well as commercial paper and certificates of deposit with maturities of three months or
less when purchased.
Derivative Financial Instruments
We use derivative financial instruments to manage our exposure to the risks associated with fluctuations in foreign exchange rates
and interest rates. Our objective is to manage the financial and operational exposure arising from these risks by offsetting gains and
losses on the underlying exposures with gains and losses on the derivatives used to economically hedge them.
Our derivative financial instruments are recorded in our consolidated balance sheet at fair value. The impact of our derivative
financial instruments on our consolidated financial statements was not material for all periods presented.
Note 3: Recent Accounting Pronouncements
Discontinued Operations
In April 2014, the Financial Accounting Standards Board (“FASB”)
updated the accounting guidance related to discontinued
operations. The updated accounting guidance provides a narrower definition of discontinued operations than existing GAAP. The
updated accounting guidance requires that only disposals of components of an entity, or groups of components, that represent a
strategic shift that has or will have a material effect on the reporting entity’
s operations be reported in the financial statements as
discontinued operations. The updated accounting guidance also provides guidance on the financial statement presentations and
disclosures of discontinued operations. The updated accounting guidance will be effective prospectively for us on January 1, 2015.
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Comcast 2014 Annual Report on Form 10-
K